How Can the Public Monitor Monetary Policy?

Takashi Senda

American Journal of Economics and Business Administration, 2017, vol. 9, issue 2, 38-46

Abstract: On August 11, 2000, the Bank of Japan made one of the most controversial decisions in the history of monetary policy when it ended its zero-interest-rate policy and increased the overnight rate to 0.25%. This paper aims to examine whether or not this decision to terminate the zero-interest-rate policy was premature. In this study, I argue that this decision by the Bank of Japan to tighten monetary policy in 2000 was unreasonable as there still remained a great deal of slack in the economy and inflation was not far from its target. On reading the minutes of the Monetary Policy Meeting of August 11, 2000, I observe that some arguments for tightening monetary policy seem to confuse rates of change and levels .

Keywords: Monetary Policy; Forecast Targeting; Inflation Targeting; Bank of Japan; JEL Codes: E52; E58 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:abk:jajeba:ajebasp.2017.38.46

DOI: 10.3844/ajebasp.2017.38.46

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