Size and composition of the central bank balance sheet: revisiting Japan's experience of the quantitative easing policy

Shigenori Shiratsuka ()

No 42, Globalization Institute Working Papers from Federal Reserve Bank of Dallas

Abstract: This paper re-examines Japan's experience of the quantitative easing policy in light of the policy responses against the current financial and economic crisis. Central banks use various unconventional measures in the range of financial assets being purchased and in the scale of such purchases. As the scope of such unconventional measures expands, it is often emphasized that the U.S. Federal Reserve policy reactions focus more on the asset side of its balance sheet, the so-called credit easing. By contrast, the Bank of Japan's quantitative easing policy from 2001 to 2006 set a target for the current account balances, the liability side of its balance sheet. It is crucial to understand that central banks combine the two elements of their balance sheets, size and composition, to enhance the overall effects of unconventional policy measures, given constraints on policy implementation.

JEL-codes: E44 E52 E58 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2010
New Economics Papers: this item is included in nep-acc, nep-cba, nep-mac and nep-mon
Note: Published as: Shiratsuka, Shigenori (2010), "Size and Composition of the Central Bank Balance Sheet: Revisiting Japan's Experience of the Quantitative Easing Policy," Monetary and Economic Studies 28: 79-105.
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Citations: View citations in EconPapers (16)

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Related works:
Journal Article: Size and Composition of the Central Bank Balance Sheet: Revisiting Japan's Experience of the Quantitative Easing Policy (2010)
Working Paper: Size and Composition of the Central Bank Balance Sheet: Revisiting Japan fs Experience of the Quantitative Easing Policy (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:feddgw:42

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