How Can the Public Monitor Monetary Policy?
Takashi Senda1 Show affiliations
- Hiroshima University, Japan
American Journal of Economics and Business Administration, Volume 9, Issue 2, pp. 38–46 · doi.org/10.3844/ajebasp.2017.38.46
Abstract
On August 11, 2000, the Bank of Japan made one of the most controversial decisions in the history of monetary policy when it ended its zero-interest-rate policy and increased the overnight rate to 0.25%. This paper aims to examine whether or not this decision to terminate the zero-interest-rate policy was premature. In this study, I argue that this decision by the Bank of Japan to tighten monetary policy in 2000 was unreasonable as there still remained a great deal of slack in the economy and inflation was not far from its target. On reading the minutes of the Monetary Policy Meeting of August 11, 2000, I observe that some arguments for tightening monetary policy seem to confuse rates of change and levels.
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Senda, T. (2017). How Can the Public Monitor Monetary Policy?. American Journal of Economics and Business Administration, 9(2), 38–46. https://doi.org/10.3844/ajebasp.2017.38.46
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