Social Sciences
3 years ago

Bank of Japan's transparency shift in 1990s reshaped monetary policy.

Monetary and and Economic Studies
Monetary Policy in the 1990s: Bank of Japan's Views Summarized Based on the Archives and Other Materials
Masanao Itoh, Yasuko Morita, Mari Ohnuki

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In the 1990s, the Bank of Japan focused on making its monetary policy more transparent and communicating better with the public. They shifted towards guiding money market rates and emphasized independence and transparency. After the Bank of Japan Act of 1997, they increased their communication efforts. The Bank also had to deal with financial system issues, like handling nonperforming loans, while conducting monetary policy.