Abstract
On April 4, 2013, Kuroda Haruhiko, the newly appointed governor of the Bank of Japan (BOJ), decided during a meeting of the BOJ’s Monetary Policy Committee to double the monetary base—which is the sum of cash in circulation, BOJ reserves, and money that BOJ can directly control—from 138 trillion yen at the end of 2012 to 200 trillion yen at the end of 2013 and to 270 trillion yen at the end of 2014 in order to realize a 2 percent inflation target. The governor noted that this will enable Japan to overcome 15 years of deflation.
Financial support from The Japan-Korea Cultural Foundation and the University of Niigata Prefecture is gratefully acknowledged.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Notes
The Phillips curve in Japan is shown in Yutaka Harada, “Chapter 13 Abenomikusu wo furikaeru (Reflecting Abenomics), Figure 13–2, p. 238, in Yutaka Harada and Makoto Saito ed., Tettei Bunseki: Abenomikusu (Sweeping Analysis of Abenomics), (Tokyo: Chuo Keizaisha, 2014).
Harada Yutaka, “Policy Issues Regarding the Japanese Economy—the Great Recession, Inequality, Budget Deficit and the Aging Population,” Japanese Journal of Political Science 13:2 (June 2012): 223–253.
Harada Yutaka, “Part 2.2 Economics Takes Command,” Takashi Inoguchi, ed, Japan and Russia: Polar Opposites or Something in Common? (New York: Palgrave Macmillan, 2015) forthcoming; Harada, “Policy Issues Regarding the Japanese Economy,” pp. 225–239.
Abe was Chief Cabinet Secretary under Koizumi Administration, when quantitative easing monetary policy was lifted in March 2006, and later he told Yoichi Takahashi Counselor, Cabinet Secretariat, at that time (Professor of Kaetsu University at present) that the lift was a failure. This is written in Takahashi Yoichi, Abenomikusu de Nihon Keizai Daiyakushin ga yattekuru (Japanese economy made rapid progress by Abenomics) (Tokyo: Kodansha, 2013), p. 175.
Shigeru Matsushima and Harutaka Takenaka, Nihon Keizai no Kiroku (Documents of Japanese Economy), Economic and Social Research Institute, Cabinet Office, Saeki Shuppan, 2011, p. 432.
Kozo Yamamoto, Nichigin ni Tsubusareta Nihon Keizai (Japanese Economy crashed by the BOJ), (Tokyo: Faast Press, 2010), p. 126.
Takemori Shumpei, Chuo Ginko wa Tatakau (Struggles of Central Banks), (Tokyo: Nihon Keizai Shinbun Shuppansha, 2010), pp. 230–231.
Cabinet Office, Keizai Zaisei Hakusho FY2001 (White Paper on the Economy and Public Finance, 2001).
Kosuke Motani, Defure no Shotai (Truth of deflation), Kadokawa Shoten, 2010.
Reinhart, Carmen and Kenneth Rogoff. “Growth in a Time of Debt,” American Economic Review 100:2 (2010): 573–578.
Ben Bernanke, Essays on the Great Depression, (Princeton, NJ: Princeton University Press, 2000), p. 80.
Eichengreen, Barry and Jeffrey Sachs, “Exchange Rates and Economic Recovery in the 1930s,” The Journal of Economic History 45:4 (Dec. 1985): 925–946.
Editor information
Copyright information
© 2015 Takashi Inoguchi
About this chapter
Cite this chapter
Harada, Y. (2015). Expansionary Monetary Policy Revised. In: Inoguchi, T. (eds) Japanese and Korean Politics. Asia Today. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137488312_3
Download citation
DOI: https://doi.org/10.1057/9781137488312_3
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-349-50402-2
Online ISBN: 978-1-137-48831-2
eBook Packages: Palgrave Intern. Relations & Development CollectionPolitical Science and International Studies (R0)