the interest rate rise strategy
In 1989, President bush has found
the Japanese enterprise financing cost is much lower than the cost of financing
of the same trade, so they were formed a concept, must make Japanese enterprise
financing costs go up, so it must want to suppress the share price inflation,
so they aimed at this Japan to exerting great pressure, the Japanese stock
market form a relatively high valuations, mainly because the Japanese internal
a large number of shares and plutocrats system, the United States through the
political pressure make Japanese enterprise each other between the shareholding
problem is restricted, especially bank shares of the listed companies hold
proportion, fell from 5% to 2%, the enterprise mutual shareholding was also
severely limits, so that makes a lot of stock is thrown out, the Japan's share
price form a big pressure, in Japan in 1989, before the crash on the last time
pressure, the pressure of the whole of Japan last financial market crash has
played a very important role. And another point is, Japan's financial system
rely heavily on the stock market, real estate market, so when the real estate
market to a certain height after, if appear large-scale price declines, will be
to Japanese financial system constitute a very serious consequences, through
these a few respects, the United States finally make Japanese real estate
market and the stock market had a great crash, that Japan's entire financial
system in the long term is weak, substantial accumulation of LanZhang through
many years, until now, still continuing to deal with such a bad loans, so the
Japanese economy has long recession, is with the financial system, the plaza
agreement with the financial system in the extreme expansion, and finally
formed a huge LanZhang, after the bubble burst, gradually clean the LanZhang's
long process are closely related.
So in appreciation process, monetary policy
is plays a key role, if it is depreciation, it would make a huge asset bubble,
repeat the mistakes of the Japan, if in the process of appreciation that deal
with like Germany, the interest rate rise strategy, it can be very effective
avoid asset prices are rising too fast, and the formation of the asset bubble,
it is also worth the proposed, because China now is also facing upward
pressure, but what should interest rates set, should make reference to the
experiences of Germany and Japan, is a successful experience, is a failure of
experience.