Inpact Of Janpanese Yen Appreciation On Janpanese Economy And Implication For China

The RMB exchange rate was no longer staring at a single U.S. dollar, and China chose to implement a managed floating exchange rate system Since July 21, 2005, at that time, the end of the RMB exchange rate against the U.S. dollar price of 8.1080, the U.S. dollar against the RMB exchange rate closed at 6.5580 on 25 March 2011, breaking the 2005 exchange rate U.S. dollar since the reform of RMB record. During this period, the RMB has appreciated 19.12%. In recent years, people pay more attention to RMB appreciation which attracts more and more hot money flow into China. At the same time, the inflow of hot money not only exacerbated asset price, but also lead to imported inflation, and then China’s CPI remained high. Therefore, we need to find a reasonable way to deal with the negative impact of RMB appreciationRecalling the history of the global financial crisis, we can easily find a lot of reference from the development of Japan’s economic. As a defeated nation in World WarⅡ, Japan had rise rapidly and then overtaken Germany, the Soviet Union, USA.This paper is divided into six chapters:The first chapter which was an introduction was divided into three sections. The first section illustrated the significance of the topic; the second section described the general framework, research contents and the main method of this paper; the third section was literature review.ChapterⅡillustrated the definition of the exchange rate and price methods, and the main factors determining the exchange rate.ChapterⅣsummarized the macro-economic policies during the appreciation of the yen.ChapterⅤillustrated China’s economic development and the evolution of the RMB exchange rate system, and then introduced the main factors which may lead RMB appreciation to be true. ChapterⅥ, many of the recommendations were given in this chapter.