Monetary Policy in Japan: A Review of the Heisei Period

Wataru Takahashi
Additional contact information
Wataru Takahashi: Osaka University of Economics

A chapter in Rethinking Japanese Economic Policy at the Turn of the 21st Century, 2024, pp 179-209 from Springer

Abstract: Abstract This chapter discusses Japan’s monetary policy during the Heisei Period (1989–2019), an era of roughly 30 years that included the boost and bursting of the bubble economyBubble (bubble economy) and the subsequent deflationary period. In addition to a review of unconventional monetary policies that began about 20 years ago, it also will shed light on discipline of monetary policyDiscipline of monetary policy, inflation targetingInflation targeting, and the relationship to fiscal policy. Lastly, it will discuss the independence of the Bank of Japan, recommending that the Bank of JapanBank of Japan (BOJ) demonstrate proactive independence based on its constitutional independence. The present monetary policy, Quantitative and Qualitative Monetary EasingQuantitative-easing policies (QQE), has struggled to achieve the target. This is mainly due to the stagnated growth potential of the economy. Discipline of monetary policyDiscipline of monetary policy is a way that manage monetary policy while making the best use of market mechanism and minimizing the size of central bank asset. Although central banks have traditionally emphasized these disciplines, unconventional monetary policyUnconventional monetary policy could be the process to loosen the discipline of monetary policyDiscipline of monetary policy. Japan is a typical. As an independent agency, central bank is expected to check government economic policies from her standpoint of non-political and longer viewpoint in order to revive the Japanese economy.

Keywords: Monetary policy; Deflation; Inflation targeting; Fiscal policy; Bank of Japan; Quantitative and Qualitative Monetary Easing (QQE) (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advchp:978-981-97-5512-7_7

Ordering information: This item can be ordered from
http://www.springer.com/9789819755127

DOI: 10.1007/978-981-97-5512-7_7

Access Statistics for this chapter

More chapters in Advances in Japanese Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().