Comparative Study Of Monetary Policy In Japan And U.s.a During The Stock Market Bubble

At the end of 80's in the 20th century, Japan experienced dramatic fluctuations in asset prices, and asset price bubble economy of Japan had a far-reaching negative effects. The Japanese economy after the bubble has burst at the "lost decade." During the stock market bubble, the Japanese monetary authorities have adopted a loose monetary policy, and to some extent, it had a negative impact on the stock market bubble formation and rupture. At the end of 90s in the 20th century, the United States is also facing a high-tech stock market bubble of the attacks. However, in this context, the Fed took some measures actively to control the adverse economic impact that was brought by the asset price bubbles. The different bubble experience of The United States and Japan, and their different attitude and monetary policy provide a reference for countries on how to deal with asset price bubbles. Since the Chinese stock market has been set up, the pace of development is very fast. Over the past three years, China's stock market experienced a sharp fluctuation, and China's monetary policy during this period is also facing a lot of difficulties.This paper mainly offers a systematic comparative analysis through the stock market bubble in Japan and the United States and the monetary policies between the formation and rupture. And also, this paper focuses on the analysis of the effect of the Japan-US differences in monetary policy reasons, and summarizes the experience between the two countries:the Central Bank should be independence; the monetary policy should be concerned about asset price volatility; the monetary policy should have the predictability and flexibility; the financial system ability to resist risks should be improved; the industrial structure should be optimized and the industrial upgrading should be promoted. In the analysis of stock market volatility and the monetary policy implemented in China in recent years, this paper offers some significant proposes to China's monetary policy recommendations. Such as enhancing the independence of China's Central Bank; perfecting the ultimate goal of monetary policy; accelerating the pace of market-oriented interest rate and increasing to open market operations; setting up transitional target-monitor system for the monetary policy; improving the flexibility and effectiveness of China's monetary policy; perfecting China's financial system; creating good environment for the implementation of monetary policy, and so on.