CHRONOLOGY

2006

BoJ squeezes the monetary base to close off the Koizumi Mini Bubble but with deflationary consequences

2003

Banking Crisis contained under BoJ + FSA co-operation and Takenaka manages the IMF FSAP successfully

1984

Ex MoF bureaucrat Sumita appointed BoJ Governor notably replaced by the BoJ puropa Mieno in late 1989

1927

Showa Financial Crisis banking regulation moves from BoJ to MoF and MoF's 'convoy system' launched

1923

Great Kanto Earthquake and post War depression impacts roll forward by BoJ easy money policy until 1927

 

GLOSSARY

BoJ

Bank of Japan nichigin

perceived legitimacy has been badly damaged by Abenomics Arrow One cf QQE

Abenomics Arrow I

BoJ Quantitative and Qualitative Easing QQE

easing was launched 2013 to defeat deflation with CPI 2 pct Inflation Targeting

Household Financial Assets

SNA basis Flow of Funds balance prepared by BoJ

JPY1,845tr or 340 GDP percent 2017 controversially set against public debt

Koizumi Mini Bubble

BoJ monetary easing led to a buoyant economy

the BoJ money supply squeeze from March 2006 led to deflationary pressures

nichigin

Bank of Japan BoJ

kanji abbreviation of nippon ginko legitimacy damaged by QQE etc cf Emperor

QE ryoteki kanwa

Quantitative Easing by BoJ as the central bank

conventional monetary policy pursued limited to JGB acquisition vs QQE

QQE ryoteki shitsuteki kanwa

Quantitative and Qualitative Easing by BoJ

unconventional monetary policy pursued beyond JGBs vs QE cf NIRP, ZIRP

tankan

BoJ economic survey

leading survey of business confidence using diffusion index methodology

Credit Bubble

rapidly rising asset prices 1986 - 1990

caused by a BoJ monetary easing to counter the 1985 Plaza Accord impacts

doitsuha

Deutsche Schule

German faction members notably strong as BoJ puropa cf Ordoliberalism, puropa

Financial Services Agency

FSA kinyucho

was set up to warehouse NPLs now being squeezed between BoJ and MoF

Flow of Funds

FoF statements shikin junkanhyo

BoJ statistics showing fund flows + fund stocks in the macro economy cf SNA

kinyucho

Financial Services Agency

was set up to warehouse NPLs and is now squeezed between BoJ and MoF

legitimacy

of sovereign's title good or bad

sources limited to Emperor and BoJ otherwise great distrust of the authorities

NIRP

Negative Interest Rate Policy

having revisited ZIRP BoJ tried limited NIRP from 2016 amid criticism cf ZIRP

tennosei

Imperial System

along with BoJ the two largely unimpugned sources of legitimacy in Japan

ZIRP

Zero Interest Rate Policy

BoJ vacillating uncertainty on ZIRP continues from 1999 onwards cf NIRP

Back to Top