Retrospection And Reference From Monetary Policy Of Japan After 1980s

The 1990s has been called the"lost decade"as regards the economy of Japan, which shows that the economy of the country has failed to recover after the collapse of its bubble economy and missed a whole ten years of development. Compared with Japan, China has a lot of similarity. Will china be the next Japan? A series of questions have been discussed in this field.Firstly, this dissertation will retrospect money policy implemented by Japan in 1980's, and analyze influences of the money policy. Secondly, we summarize two characteristic of the china's economy development now. One is unbalance outside—numbers of surplus on balance of payment and appreciation RMB; the other is unbalance inside—full of liquidity and the stress of inflation. Thirdly, we collect data to compare the similarities between China and Japan and found that they are similar in five aspects, that is, surplus on balance of payment require appreciation, full of liquidity bring inflation, increase of the price of asset imply bubble, lots of bad assets in banking system backup the conduction of money policy, and unbalance of economic structure baffle the development of economy. And then, we cite some economic theory to analyze these similarities and sum up the lessons we can learn from Japan's experience.According to the dissertation, the lessons we can learn from the Japan's experiences are as follows:(1) Under the control of capital, foreign exchange market is also liable to be stricken by speculation, so monetary policies should be seemed as a useful way to avoid excessive fluctuation.(2) The raise of exchange rate will influence economy in short term. But if we grasp this chance to adjust our economic structure, which will be helpful to the development.(3) We should supervise the price of the asset when economy is getting along with ascend. (4) We must keep the balance of saving and investment. When faced invalidation of money policy and fiscal policy, we should consider the reformation of the economic structure.(5) To maintain the independence of the money policy, we should create a more flexible institution of RMB, perfect the foreign exchange market, make sure of the managed float of RMB, improve the forming institution of RMB, gradually put forward the RMB capital account exchangeable.