Abstract
Faced with the persistent turmoil in financial markets and the ongoing expansion of deflationary pressures in the economy, the Central Bank of Japan officially adopted the policy of controlling the yield curve of government bonds in September 2016. Once this policy was released, it caused a wide range of heated discussions, and many scholars put forward their views on the specific connotation of this policy. It forms critical help in distinguishing the yield curve control policy in the United States. Meanwhile, this policy not only led to a rapid depreciation of the Japanese currency but also significantly impacted various aspects, such as Japan's commodity exports, government debt burden, private sector consumption and expansion scale, and central bank independence. This paper further explores the correlation between the yield curve control policy and the yen price, concluding that there is a significant negative correlation between the two variables through empirical analysis. The yield curve control policy implemented by the Bank of Japan also provides valuable insights for China in formulating its monetary policy. It highlights the importance of exploring an interest rate decision-making model tailored to the country's specific circumstances, which can better promote China's economic development and achieve high-quality economic growth.
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