Bank of Japan's unprecedented policy challenges traditional central banking practices.
The Bank of Japan implemented a policy called quantitative easing in 2001 to boost the economy. They aimed to increase the amount of money in circulation by providing extra funds to banks. This was a new approach for central banks and posed challenges. The Bank had to take various actions to reach their target, which was higher than required reserves. The experiences of the Bank in implementing this policy can be helpful for other central banks, market participants, and academics. The focus of the paper is on the technical aspects of open market operations to achieve the target under the quantitative easing policy.