Spillover Effects Of Quantitative Easing Monetary Policy In The United States And China’s Countermeasures

After financial crisis, The United States government in order to promoteinvestment and restore public confidence in the real economy, the Fed continued toreduce American federal interest rates until it is close to zero,But it did not stimulateeconomic growth which did not reach the expected effect, which was regarded as theAmerican economy has entered a "liquidity trap". To this, the fed to take two roundsof quantitative easing monetary policy, and continuing to inject liquidity into themarket. Japan is the first national implementation of quantitative easing monetarypolicy, which makes the Japanese economy has become the object of study by manyscholars. According to the analysis of2001to2006years of Japan’s economic indexand the effect, that Japan’s economy just out of deflation, it did not make the entityeconomy in the development by leaps and bounds. Many scholars to the United Statesto take the quantitative easing monetary policy hold a negative attitude, The UnitedStates as the world’s largest economies, and U.S. dollars at the central position in theinternational monetary system, The United States to take the policy is considered to bea "beggar the neighbor" monetary policy, it put American losses of the economic crisisimpute to other countries through spillover effect, at the same time,the highunemployment and slow growth in GDP shows that the United States of America ’seconomy has not been substantial improvement.In this paper, through the quantitative easing monetary policy implication andtheoretical background of the analysis studies comes to the conclusion that theresponse to the crisis the only effective way is by direct injection of liquidity to themarket, So the monetary authorities should take the quantitative easing monetarypolicy, But this is just as the theoretical basis. The fact that the United States isdifferent from Japan, Dollar as the international monetary system reserve currency, The easing of dollar is not only have an impact on the U.S. economy, but also it willproduce a spillover effect through the United States and economic contacts among allcountries. Then it is extremely necessary to analyze the spillover effects ofquantitative easing of monetary policy in the United States. This article on the UnitedStates in nearly a decade economic indicators, as well as the Fed’s balance sheet of thestructural analysis to determine whether the U.S. economy to recover, and analyze theeffect of the quantitative easing of monetary policy implementation and worldwidethe positive effects and negative impacts. This paper is the complete research andsystematic analysis to the quantitative easing monetary policy spillover effect. Thisarticle mainly view is the U.S. quantitative easing monetary policy for the Americaneconomy has been gradually improved, but it can’t reach the U.S. governmentexpected，and predict the quantitative easing monetary policy implementation will notend, there will be the third round, even the fourth round quantitative easing monetarypolicy. Moreover, in the substantial depreciation of the dollar of process, each countrygradually emulate the United States to take quantitative easing monetary policy, this isthe United States faces economic recovery another big problem, it is also a reasonwhich would cause of the future global inflation.In addition, based on the analysis of the causes of overflow, the paper forecastsand judge each country in order to deal with the "begger-my-neibour" monetarypolicy measures. This paper on China’s monetary authorities should be how to dealwith the United States the quantitative easing monetary policy effect makesuggestions, in maintaining the stability of RMB exchange rate at the same time,realize the liberalization of financial market development, accelerate the exchangerate of RMB internationalization is an important measure to get rid of excessivereliance on the dollar. At the same time, in the domestic economy, this essaysuggested that the central bank and government policy coordinates, to develop therural financial, pension Finance and so on, On the soft environment of China toprovide credit support, but also to strengthen the securities market liquidity regulation,avoid international hot money from real estate to speculation to the Chinese stock market, make Chinese economy steady and rapid growth, virtual economycoordinated development.