Comparatie Study On Central Banks’ Financial Crisis Management Of America And Japan

Crisis management, originally is the terminology in the science of management, hasbeen applied in the financial discipline. Management of financial crisis is mainly refers tothe adverse effects of the government institutions in order to cope with the financial crisisbefore, during and after the event generated, adopt corresponding countermeasures,including early warning, in management and after the improvement of the system. In theeconomic and financial today, the outbreak of the financial crisis will bring great harm tothe financial markets and financial institutions, pose a threat to the current stablefinancial order, and directly affects the healthy and stable development of the nationaleconomy as a whole. If not handled properly, will lead to disastrous consequences. Inaddition, in order to maintain a stable social point of view, the management of financialcrisis is a typical public goods; to maintain financial security perspective, financial crisismanagement is a government timely and must provide the public goods. Therefore, oncethe outbreak of the financial crisis, the government will need to mobilize all can mobilizethe forces, by the comprehensive use of relevant departments of various means andmeasures, try to restore the negative impact of the crisis, as far as possible to reduce theharm caused by the economic and financial crisis. So, whether can control the range andextent of the financial crisis, will seize the opportunity to promote the reform anddevelopment, finally lies in the effective management of the financial crisis, whichdirectly reflects a country’s level of financial crisis management.Due to the particularity of management of financial crisis, an important featurewhich is different from the common crisis management lies in its "financial". With thefinancial crisis and the central bank can inseparable role relationship. Therefore, thecentral bank has played a vital role in the financial crisis management process. So, for thestudy of financial crisis management of central bank both in theory and in practice isextremely important.The people’s Bank of China for "the central bank balance sheet and its response tothe crisis ability" group (2010), the central bank role in coping with crisis mainly focuson the following two aspects: one is whether the central bank should bear the primary responsibility in response to the financial crisis; the two is that if the central bank to playthe main role, so exactly what measures should be taken to deal with the crisis. ZhangXuechun (2009) that the financial crisis management, the central bank is mainly reflectedin two aspects: one is the implementation of monetary policy, including lower interestrates and deposit reserve rate; two is embarks from the maintenance point of financialstability, its lender of last resort, providing liquidity to the market through the rediscount,refinancing, to meet the needs of economic real money demand, to prevent theemergence of a lot of selling assets. Goodfriend (2004) points out, the central bank policyfundamental strength comes from its monopoly on the monetary base. Thus: the role ofthe central bank and the maintenance is closely related to monetary and financial stability;the central bank monopoly of a country’s currency, therefore through certain monetarypolicy operation and fulfill the lender of last resort to help cope with the financial crisis;monetary policy, financial stability and lender of last resort three aspects of this theoryconstitute the basic theory of financial crisis management of the central bank the.The timing of the measures in the financial crisis before, during and after thecomparison and analysis between Japan and the US central bank, the similarity anddifference in the crisis management of the Fed and the Bank of Japan, the United Statesand Japan to understand the two world economies of central bank financial crisismanagement process has the benefit, at the same time, and help us understand thedevelopment of financial crisis management and the new frontiers.Specifically, this paper includes the following contents:Firstly, introduces the subprime crisis occurred in2007after the United States, allcountries in the world to put more effort and research of financial crisis and itsmanagement. Especially the central banks play in the financial crisis management role,becomes the core issue. The introduction part mainly on the financial crisis comparisonresearch background, significance, research purposes and methods and lack of innovationare described, analyzed and pave the way for the following parts of the thesis.The second is the review of related theory of financial crisis management. This chaptermainly introduces the definition and the causes of the financial crisis, the concept andmeasures of financial crisis management. Then, by using the existing theories, such asthe theory of financial supervision, lender of last resort theory and financial fictitiousness theory will be financial crisis and financial crisis management organically together; at thesame time, a brief analysis of the central bank in the important role played by.Then entered the study links the main. The financial crisis beforehand, after themanagement analysis and exposition. First from the Fed and the Bank of Japan for themodel of financial crisis early warning mechanism is analyzed, the Fed and the Bank ofJapan, the crisis early warning model--DSGE model and worldwide major central banksused; at the same time, the way of innovation and new research on the Bank of Japanbased. The following shows that the management of the Fed and the Bank of Japan’sfinancial crisis, in view of the importance of monetary policy in the means of crisismanagement of central bank in a country, routine using the content of the two chaptercompares the Fed and the Bank of Japan (which are the traditional monetary policy) andnon conventional monetary policy. And mainly through quantitative easing and changethe central bank balance sheet is the similarities and differences between the Fed and theBank of Japan in the process of financial crisis management. Then, discuss the relatedmeasures a country’s financial crisis management, judicial reform and related measures,especially the laws and regulations related to the central bank reform and improve thedeposit insurance act.Finally, crisis management measures summarized a recent financial crisis the Fed,more important is, through comprehensive comparison and an international perspectiveto look at the problem of financial crisis management. Propose: globalization in theworld economy and financial markets today, the ultimate objective of financial crisismanagement of a country is to pass the crisis; and the essence of financial crisismanagement is to maintain financial stability and sustainable development.The innovation of this paper lies in: by using the methods of comparative financefinancial crisis management, starting from the perspective of the central bank, try to listand analysis of the world’s two central banks--the Fed and the Bank of Japan financialcrisis management methods and measures, and expounds the similar and different points.In the analysis of financial crisis management in advance, to clarify and compare themodel the Fed and the Bank of Japan’s crisis management early warning, analysis of thelatest achievements of the central banks of the research in this field. And, after thefinancial crisis management part of the judicial system reform and the supporting measures, provide a reference for around the central bank to build a complete supervisionsystem. At the same time, a comprehensive and unified theory and thought ofmanagement related to the financial crisis after the comparison to the United States, forexample, look at the international higher perspective and analysis of the financial crisismanagement of a country and the substantial. In addition, the shortage of this paper liesin the financial crisis management part not to know "exit mechanism" to analyze andelaborate, this is not the key, hope to add something.