The Legality of Japan's Current Monetary Policy under International Law

John Riley Sogang University School of Law, Korea.
35 Baekbeom-ro (Sinsu-dong), Mapo-gu, Seoul 121-741 Korea.
Corresponding Author: johnriley007@gmail.com
ⓒ Copyright YIJUN Institute of International Law
This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract
In response to the 2008 global financial crisis, many of the world's largest central banks initiated unconventional monetary policies such as quantitative easing when standard open market operations became ineffective. The Bank of Japan, the US Federal Reserve, the Bank of England and the European Community Bank were among those that aggressively increased their respective monetary bases to purchase specified financial assets from commercial banks and financial institutions in order to lower interest rates interest rates for specific debt securities and stimulate their economies. Japan, which has long suffered from years of debilitating deflationary cycles, has targeted and committed to open-ended purchases until a stable two percent rate of consumer price inflation is achieved. Several of Japan's chief exporting rivals, in particular China, have publicly criticized the Bank of Japan for using its current monetary policy to intentionally devalue its currency and thereby benefit from an unfair trade practice. This criticism is unwarranted and Japan's policy complies with international law.

Keywords : IMF, WTO, Currency Devaluation, Exchange Rates, Quantitative Easing, Bank of Japan

The Full Text is available at: http://dx.doi.org/10.14330/jeail.2014.7.1.09

Japan's Unspoken Currency Manipulation by Monetary Policies: A Chinese Lawyer's Perspective

Xin Chen Xiamen University Faculty of Law, China
Xiamen University, Faculty of Law, 422 South Siming Road, Xiamen, China, 361005.
Corresponding Author: echoflying@hotmail.com
ⓒ Copyright YIJUN Institute of International Law
This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract
During the past few years, the Bank of Japan has injected billions of yen into the economy and pursued a monetary easing policy. Japan has plausible arguments, namely that its current policies are needed to support the growth of the economy and to spur inflation. However, these measures result in a weakened yen and increase trade imbalances between Japan and other Asian countries, particularly China. This article argues that Japan's practice is rooted in protectionism and examines such actions under the IMF Agreement and the WTO system. It is suggested that the Chinese government should adopt diplomatic and judicial approaches to urge Japan to return to normal monetary policies.

Keywords : Devaluation, Yen, Quantitative Easing Policies, Exchange Rates Manipulation, IMF, WTO

The Full Text is available at: http://dx.doi.org/10.14330/jeail.2014.7.1.08