In fl ation Targeting and Japan : Why has the Bank of Japan not Adopted In fl ation Targeting ?

نویسنده

  • Takatoshi Ito
چکیده

By any historical or cross-sectional standard, the Japanese economic slump from 1992 to 2004 has been quite unusual. The economy that was once regarded as ʻnumber one ̓fell into a state of low growth, falling prices, and chronic banking crises for more than a decade.2 The average growth rate from 1993 to 2003 was just above 1 per cent, in contrast to the average growth rate of 4 per cent between 1975 and 1992. Slow growth was accompanied by disinfl ation in the fi rst half of the 1990s and, eventually, defl ation since the mid 1990s. The defl ation in prices was associated with a shrinking of the Japanese economy – a rare phenomenon among advanced economies. From 1997 to 2002, Japanese nominal GDP (in yen) shrank by 4 per cent, while the nominal GDP of the United States (in US dollars) increased by 25 per cent.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Discussion of Inflation Targeting and Japan: Why has the Bank of Japan not Adopted Inflation Targeting?

This paper argues that the Bank of Japan shrank from doing the right thing because it required the adoption of unconventional policies that might lose the Bank its newly acquired independence. Taka Ito frankly recognises that this argument has a problem: the Bank of Japan adopted two and a half of the recommended unconventional policies: increasing excess reserves, buying government bonds and b...

متن کامل

Discussion of A Snapshot of Inflation Targeting in its Adolescence

This paper studies three important questions. First, what distinguishes infl ation targeting (IT) from the practices of other central banks? Second, how has IT practice evolved? And third, what is the empirical evidence on IT practice and performance? With regards to the third question, Ken Kuttner focuses particular attention on the issue of whether infl ation-targeting central banks have been...

متن کامل

Imes Discussion Paper Series Institute for Monetary and Economic Studies Bank of Japan

The paper examines the transmission mechanism of monetary policy in an open economy with and without a binding zero bound on nominal interest rates. In particular, a foolproof way of escaping from a liquidity trap is suggested, consisting of a price-level target path, a devaluation of the currency and a temporary exchange rate peg, which is later abandoned in favor of price-level or in‡ation ta...

متن کامل

The First Year of the Eurosystem: Ination Targeting or Not?

This paper is a brief evaluation of the Eurosystem's monetary-policy regime after its first year, in particular of the extent to which it is similar to inflation targeting as practiced by an increasing number of central banks. I examine the Eurosystem's goals, framework for monetary-policy decisions and communication with outsiders. Criteria for evaluation are whether the goals are unambiguous ...

متن کامل

The Effects of Capital Market Openness on Exchange Rate Pass-through and Welfare in an Infl ation-Targeting Small Open Economy

Working papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded offi cial Federal Reserve Bank of Cleveland publications. The views stated herein are those of the authors and are not necessarily those of the Federal Reserve Ban...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2004