A Comparative Study Of Koizumi Cabinet And Abe Cabinet's Quantitative Easing Monetary Policy

As an unconventional monetary policy tool,quantitative easing monetary policy was first proposed by the Japanese government and first practiced.At the end of the last century,with the bursting of the bubble economy,the Japanese economy has changed from "the superiority of the Western economy" to the "poor student." With the plunge in stock prices and land prices,Japan after the prosperity of the economy entered a period of deflation and long-term depression.In order to solve the problems of the Japanese economy,successive Japanese cabinets have tried to bring the Japanese economy back to normal track through fiscal and monetary policies.As an intermediary target of traditional monetary policy,interest rate instruments have been widely adopted by the Japanese government.The Japanese government gradually lowered interest rates and finally proposed a zero-interest rate policy.However,the Japanese economy has fallen into the liquidity trap of Keynes.The short-term nominal interest rate of zero limits the adjustment of interest rates,and the traditional monetary policy with interest rate as the core fails.When Koizumi's cabinet was in office,it was at the time of the collapse of the US Internet economy and the Asian financial crisis.The Japanese economic situation continued to decline.Under this circumstance,the Japanese government proposed and applied quantitative easing monetary policy in 2001,which is the first government in the world to use this policy to guide the economy.This round of quantitative easing continued into 2006,and overall achieved the intended purpose,the Japanese economy has been restored.The world financial crisis of 2007,the European sovereign debt crisis of 2009,the Great East Japan Earthquake in 2011 and the Fukushima nuclear accident caused the Japanese economy to once again enter a recession.In 2012,Abe's cabinet came to power and launched Abenomics,known as the �Three Arrows�.The most core part is the �bold financial policy� with quantitative easing monetary policy as a policy tool.Prime Minister Abe appointed Kuroda to be the president of the Bank of Japan and proposed a new policy of �quantitative and qualitative monetary easing(QQE)�,which comprehensively upgraded the quantitative easing monetary policy in terms of quantity and asset structure.After systematically sorting out relevant literature and theoretical basis of the quantitative easing monetary policy,this paper analyzes the background,objectives and contents,policy effects and risks of the quantitative easing monetary policy implemented by the two Japanese cabinets,and finally puts forward policy Suggestions for China.In terms of research methods,this paper focuses on qualitative analysis.In terms of research content,this paper first makes a general analysis of the quantitative easing monetary policy,studies the background of the quantitative easing monetary policy of koizumi's cabinet and Abe's cabinet,and compares their similarities and differences.Then the paper analyzes the objectives and contents of the two rounds of quantitative easing monetary policy,and analyzes the implementation effect of the two rounds of quantitative easing monetary policy on this basis.This paper concludes that the quantitative easing monetary policy has a strong stimulative effect on the economy in the short term,but in the long term,it intensifies the macroeconomic risks and brings many new problems for the healthy development of the Japanese economy.Finally,this paper summarizes the risks of Japan's quantitative easing monetary policy and gives policy Suggestions on maintaining the stable and healthy development of China's economy.