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

Author:Xin Chen
VII JEAIL 1 (2014)
Xin Chen
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
      
trade imbalances between Japan and other Asian countries, particularly China. This
article argues that Japans practice is rooted in protectionism and examines such
actions under the IMF Agreement and the WTO system. It is suggested that the
    
to return to normal monetary policies.
Devaluation, Yen, Quantitative Easing Policies, Exchange Rates
Manipulation, IMF, WTO
s Unspoken
Currency Manipulation
by Monetary Policies:
A Chinese Lawyer
Associate Professor of Xiamen University Faculty of Law. LL.B./LL.M./Ph.D.(Xiamen). ORCID: http://orcid.
org/0000-0001-6051-8256. The author may be contacted at: echoflying@hotmail.com / Address: School of Law,
Xiamen University 422 South Siming Road, Xiamen, China 361005.
DOI: http://dx.doi.org/10.14330/jeail.2014.7.1.08
2014-05-23 오후 2:29:43
162 Xin Chen
1. Introduction
Since Shinzo Abe became prime minister of Japan on December 26, 2012, the Bank
of Japan (BoJ) has introduced a series of economic reform to correct its current
economic recession.
As traditional monetary policies have limits in combating
     
at depreciating the Japanese yen. These measures have resulted in substantial
depreciation of the yen  other currencies. The depreciation of yen has helped
to bolster Japanese exports, but is at the expense of Japans trading partners.
While there are many commentaries on this issue, most of which focus on
economic or political implications.
This research, however, will provide an in
depth analysis of whether Japans policy could be challenged under relevant
international treaties including the IMF Agreement, Article XV of the GATT 1994,
or the Subsidies and the Countervailing Measures Agreement [hereinafter SCM
Agreement]. It will discuss what kinds of remedies would be available if Japan
     
parts including Introduction and Conclusion. Part two will provide background on
Japans monetary policies and the criticisms against them. Part three will examine
the rules and regulations under the IMF that govern the exchange arrangements
and exchange rate policies. Part four will clarify the relationship between exchange
to Japan  
    
legal strategies to encourage a change in Japans monetary policies.
1D. Pilling, Premise of Shinzo Abe’s Economic Plan is that 15 Years of Deflation Have Sapped Japan’s Animal Spirits,
Financial Times, Jan. 2, 2014, available at http://www.ft.com/intl/cms/s/0/c26bc078-673d-11e3-a5f9-00144feabdc0.
html#axzz2ws0OYKqB (last visited on Apr. 17, 2014).
2See generally Bonkwan Koo, Abenomics, Finally a Solution to Revive Japan?, 6 SERI Q. 30 (2013); A. Field,
Japan’s Three-Arrow Attack, 14 J. com., 19 (2013); A. Pereira & S. Allard, Recent Development: Looking to Fill
an International Regulatory Gap: Brazil Brings the Issue of Exchange Rates and Trade Before the World Trade
Organization, 26 emory inTl l. rev. 535 (2012).
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