preview

The Bank Of Japan 's Monetary Stimulus Program Essay

Decent Essays
For a prolonged period of time, the Bank of Japan (BofJ) has implemented expansionary monetary policy tools in order to achieve price stability and economic growth. The inflation rate (CPI) target for the BofJ is currently 2%. The success of their monetary stimulus program has often been subject to the mercy of external market forces. The central bank has recently blamed Brexit for the failure of its monetary stimulus program, and extended economic ramifications. The banks quantitative easing (QE) & negative interest rates have failed to save the Japanese economy from stagnation. Global market uncertainty in light of Brexit instigated a rally for the Japanese Yen on the FOREX, leading to an appreciation of the Yen and the subsequent failure of the BofJ’s monetary stimulus. This report will identify the banks use of monetary policy before and after the Brexit vote. It was also try to establish whether market uncertainties caused by Brexit are solely to blame for the failure of the BofJ’s monetary stimulus program. Finally the report will assess whether other variables such as, low oil prices and a slowdown in emerging economies were to blame for the failure of the monetary stimulus package.

Context

Abstract………………………………………………………………………….1

Introduction……………………………………………………………………...3

Monetary policy pre Brexit……………………………………………………...4

Monetary policy post Brexit..............................................................................
Get Access