Empirical Study On The Yen Internationalization To The Effectiveness Of Monetary Policy

With RMB joining the Special Drawing Rights On December 1,2015,the internationalization of RMB progresses further.Internationalization of the yen and the yuan are similar in many ways,so the experience of yen internationalization is worthy to learn for RMB internationalization.After the financial crisis,we have to face the new sitituion.such as,the unbalance of the dollar standard system and vulnerability,and accelerating the internationalization of the RMB,In order to take the right measures to deal with currency internationalization of adverse effect brought,especially the impact on the effectiveness of monetary policy.We must consider a series of questions that monetary internationalization brings.Though the combination of qualitative and quantitative research methods,this paper analyzes the related issues theoretically and empirically.To begin with,we analyze the impact of currency internationalization on monetary policy.This part is concentrated on the exchange rate,international capital flows and interest rates.Then comb the present situation of the internationalization about the Japanese yen and the monetary policy implementation situation about Japan.This part is concentrated on the yen trading conditions in financial markets,stock status as an international reserve assets and the settlement in international trade.Get the following conclusion,the development of the internationalization of the yen was not successful.In this part,we also analyz the reason for difficulties in the development of the internationalization of the yen.Finally,on the basis of the VAR model,aiming to improve the development of the internationlization about RMB,we propose some relative policy advice.We should keep the entity economy developing,open capital account step by step,pay attention to the currency cooperation,follow development path such as,around then regionalization and internationalization,finally strengthen supervision about cash flow and the regulation of the offshore yuan market.