Case Study On Unconventional Monetary Policy In Japan

Unconventional monetary policy is a special policy adopted by the central bank to repair the defects of the financial system when traditional monetary policy fails.After 2007,major economies in the world have been hit by the subprime mortgage crisis.As a new type of monetary policy different from traditional monetary policy,unconventional monetary policy has been widely concerned by the academic community.Japan,as the first country to launch and implement this new type of monetary policy,has a long history of policy implementation and has become a key academic country.At the beginning of this century,in order to ease the long-term depression caused by the Asian financial crisis,the Bank of Japan decided to cut interest rates to stimulate the economy.However,when the interest rate dropped to the minimum limit,there was still no success in reversing the decline in Japan's economy.In March 19,2001,the Bank of Japan introduced the quantitative easing policy to curb deflation,which is the first unconventional monetary policy in the world economic history.After the subprime mortgage crisis in 2007,Japan kept increasing the number of unconventional monetary policies.It has introduced quantitative qualitative easing policy,negative interest rate policy and yield curve control policyadding more measures for unconventional monetary policy.In February and September of 2016,Japan once again increased Japan's unconventional monetary policy on its original qualitative and quantitative easing policy.It successively issued the negative interest rate policy and the qualitative and quantitative easing policy that is controlled by the yield curve so that Japan's Unconventional monetary policy has once again drawn much attention.By collecting and sorting the macroeconomic data in Japan,this paper analyzes the impact of unconventional monetary policy in various periods of Japan on the macroeconomy and whether the corresponding specific policy goals have been achieved,and analyzed the effects of unconventional monetary policy.This article analyzes the overall unconventional monetary policy in Japan.The results show that unconventional monetary policy is effective in easing deflation and has limitations in regulating the exchange rate and improving the credit market.In the end,based on the enlightenment of Japan's unconventional monetary policy,this article puts forward the corresponding policy suggestions for our country.