| To solve the long-term economic downturn,The Bank of Japan implemented the quantitative easing monetary policy for the first time in the world in 2001.In addition to a short period,quantitative easing monetary policy has been extended and gradually strengthened.The actual effects of the policy is failed to get the expected result,the analysis of this situation is focused on the transmission mechanism of monetary policy.Monetary policy transmission mechanism is crucial to achieve the final effect of monetary policy.The effectiveness of monetary policy depends to a large extent on whether or not its transmission channel keeps going.Play a role in the monetary policy transmission mechanism must rely on a variety of transmission channels,the theoretical and empirical aspects of the effectiveness of each transmission channel has been divided.This paper first reviews the course of Japan's quantitative easing.Then get the real effect of monetary transmission channels through the establishment of the VAR model and impulse response analysis.As the world's third largest economy,whether Japan's economy recovery or not will have an important impact on the world economy.The short-term effect of Abenomics is obvious,which according to the policy opens the economic recovery.After the theoretical and empirical analysis of effectiveness of Japan 's loose monetary policy transmission mechanism,this paper forecast the effect of the Abenomics through the results of VAR econometric model.The conclusion is that Japan's long-term economic growth faces huge challenges and uncertainties. |
