Appreciation Of The Yen And Regulation Of The Japanese Economy And The Implications For China

This thesis focuses on comprehensive analysis of economic effects for the yen's appreciation and Macro-control. The analysis from postwar Japanese economy recovery to 2008, volatility on the relationship between Japanese economy growth and the yen's exchange rate, the lager differences of Japanese economy growth during the different exchange rate system. Japan postwar "trading nation," strategy must be supported by better product, better quality and lower prices. 360 yen exchange for 1 US$ is a fixed exchange rate, which is relatively underestimated, however it guarantees Japanese products has the price advantages in international trade. The fixed exchange rate system in post-war has guaranteed the rapid growth of Japanese economy for 22 years (1949-1971). Japanese economy from the steady growth to slump during 1971～2008 is closely related to the floating exchange rate system.This thesis draws some conclusions from the systematic analysis of Japanese government's macro-control during the appreciation of the yen. The incorrect economic control measure will bring very large blunders to the economy. The intervention during the appreciation of the domestic currency requires full research and analysis rather than absent careful consideration of random control.Enter 2008, Chinese economic situation during RMB appreciation has some similarity with Japan's in 1970s and 1980s, considering the impact of the yen's appreciation and micro-control on the Japanese economy, we get some enlightenment to Chinese economy growth during the RMB appreciation.The first chapter cited related concepts and theories of exchange rate, draw the definition of the exchange rate, the method of make price, and further understanding the importance of exchange rates in international trade via Purchasing Power Parity theory, and then analyze the relationship between the international balance of payments and the exchange rate, introduce the evolution of the currency exchange rate system.The second chapter focuses on comprehensive analysis of the relationship between the development of Japanese economy after post-war and the yen's exchange rate. According to Japanese economy development history in postwar and divided it into five parts to analysis. The first part is the period of high economic growth in postwar. The second part is the period of steady economic growth in postwar. The third part is the period of formation of Japan's bubble economy. The fourth part is the period of the Japan's economy enters cool growth after the burst of Japan's bubble economy. The fifth part is the period to revive the Japan's economy via government's struggle and efforts. Summary of this chapter is draw a conclusion that is the appreciation of the yen brought more advantages than disadvantages to Japan's economy.The third chapter studies the process of macro-control measures during the yen's appreciation and summed up five points. (1) Islands Transformation Plan evoked serious inflation; (2) Competition pattern of the two parties led to a implementation by super-loose monetary policy; (3) The stock market to become one of the sites to divert excess liquidity services to the Ministry; (4) The real estate market bubble burst is the key culprits led the Japan's economy into slump; (5) Bubble economy was "reckless" shattered, reviving the economy is even more difficult.The fourth chapter studies the economic situation and social and political background of China and Japan during the currency appreciation in order to find difference in these sectors. Compare and analyze the difference between current China economic situation and Japan economic situation in 1970s and 1980s.The conclusion is current China economic situation between the Japan economic situation in 1970s and 1980s. The conclusion will lay the foundation for aggregate enlightenment.The fifth chapter based on the analysis and results above, summed up 5 enlightenments to China during the appreciation of RMB through the yen's appreciation and micro-control.