Internationalization Of The Yen On Japanese Monetary Policy Influence The Effectiveness Of Research And Enlightenment

With the outbreak of the financial crisis in2008, the international monetary system dominated by the dollar is being questioned and condemned, and the requirements of reforming of the international monetary system are increasing. China is a big developing country, China’s gross domestic product (GDP) exceeded Japan and ranked the second in the world in2010. The achievements of our country are remarkable, our country is an economic power, but it is a "small currency country" in the same time, the RMB is not commensurate with the status of China’s economic position. Therefore, the internationalization of RMB cause for concern in recent years, the Chinese government has also taken various measures to actively promote the internationalization of the RMB. However, the internationalization of the RMB has advantages and disadvantages, and how to guard against the risk of the internationalization of the RMB to become the focus of attention of the scholars and the monetary authorities. Especially, to figure out the impact of the internationalization of the RMB to China’s monetary policy has an important significance for the prevention of the risk of monetary policy.The internationalization of Currency will produce what kind of impact to the effectiveness of the monetary policy of a country, and the impact through which channels to the monetary policy, these are the focus of this study. In addition, Japan and China located in the Department of East Asia, the economy and the path of economic development in Japan and China have a lot of similarities, and the yen is among the International Monetary column, so the internationalization of the yen has a larger reference to the internationalization of the RMB. In this paper, we use the economic data of Japan to study the impact of yen internationalization to the effectiveness of monetary policy in Japan, from which we can draw inspiration to the internationalization of the RMB.In this paper, a combination of theoretical analysis and empirical analysis conducted in-depth research of the relationship between currency internationalization and the effectiveness of monetary policy. First, this paper analysis of the pathways of the internationalization of currency to impact the effectiveness of the monetary policy, and qualitatively analysis the impact the internationalization of currency on the effectiveness of monetary policy. Secondly, we establish the intertemporal equilibrium equation, and use mathematical models to deduce impact the internationalization of currency on the effectiveness of monetary policy. Next, we select the sample data of Japan in1994-2011, use autoregressive distributed lag model rolling regression and multivariate linear regression measurement methods to quantitatively study the impact the internationalization of yen on the effectiveness of monetary policy of Japan. Finally, based on the theoretical analysis and empirical analysis results we summary the conclusions of the article and put forward corresponding enlightenment.