Industry Effects Of Exchange Rate Adjustment

After rapid economic growth, both China and Japan faced currency appreciation. They started to revaluate the currency under external pressure. This paper highlights the impacts of appreciation of Yen to Japan's economy, especially industrial structure. And further find the impacts of the adjustments of RMB exchange rate on China's economy, especially on the industrial structure based on the differences between China and Japan.First, this paper analyzes the present economical problems of China and the background of economy and politics, and on this basis point out the necessary for the RMB appreciation. Then this paper introduces the comparative researches on the exchange rate between China and Japan. And introduce the theory of exchange rate and industrial structure, and its transmission mechanism, for the later analysis. The fifth part of this paper gives a detailed analysis of the impacts of Yen appreciation on Japanese trade, investment and domestic price, and then describes the further changes of Japanese industrial structure. The last part of this paper show the inspirations of Japanese exchange rate reform to China, based on the experience and lessons from the appreciation of the Yen in Japan, and further propose the policies about the reform of the level and the system of RMB exchange rate.