Financial repression refers to excessive financial control, interest rate restrictions, credit lines and monotonous financial assets in developing countries where the role of market mechanism has not been fully exerted. Financial liberalization is also called financial deepening, including interest rate liberalization, business liberalization, foreign exchange liberalization and financial management liberalization, which are relative.

The theory of financial repression is a developmental economics theory founded by American economists McKinnon and Xiao in the 1970s, and it still has strong practical significance for our country. Financial liberalization is a theory put forward by American scholar Xiao in Financial Deepening in Economic Development.