TITLE

Avoiding a Great Depression but Getting a Great Recession

AUTHOR(S)
MacLean, Brian K.
PUB. DATE
March 2006
SOURCE
International Journal of Political Economy;Spring2006, Vol. 35 Issue 1, p84
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article presents an overview of the Bank of Japan's monetary policy during Japan's Great Recession from 1991-2004. The Bank of Japan was faced with a decline in asset price, slowdown in economic growth, deflation, fiscal policy that transformed budget surpluses to high gross debt, unstable exchange rates, structural reforms and problems in the banking industry. The Bank of Japan first responded by using conventional fiscal policy to change monetary policy rates incrimentally. It then used borderline innovative measures like a near-zero percent interest rate policy. Finally it changed its policy to push inflation down to zero and increase the government's coffers.
ACCESSION #
22149114

 

Related Articles

  • Paris Club repayment.  // Emerging Europe Monitor: Central Europe & Baltic States;Feb2005, Vol. 12 Issue 2, p4 

    The article reports that improved fiscal policy execution in 2004, as well as supportive exchange rate developments, have prompted the Polish authorities to announce that the country will repay its debt to the Paris Club of creditor nations, due to mature in 2005-2009, ahead of schedule....

  • POLICY FORUM: UK MACROECONOMIC POLICY AFTER BLACK WEDNESDAY. Greenaway, David // Economic Journal;Jul97, Vol. 107 Issue 443, p1126 

    The article discusses various papers related to the new framework for the macroeconomic policy adopted in Great Britain after September 1992. In the first paper scholar David Cobham focuses on monetary policy and the post-exchange rate mechanism (ERM) framework of an inflation target and a...

  • "Expansionary fiscal contractions": a standard Keynesian explanation. Hjelm, Göran // Journal of Post Keynesian Economics;Winter2006/2007, Vol. 29 Issue 2, p327 

    The article presents a standard Keynesian explanation of the expansionary fiscal contractions (EFC). It shows the substantial depreciation of the real exchange rate prior to fiscal contractions. Results of the study suggest the contribution of exchange rate and monetary and fiscal policies to...

  • Macroeconomic policies.  // OECD Economic Surveys: Denmark;Feb99, Vol. 1999 Issue 3, p35 

    Examines the credibility obtained by the long-standing commitment to fixed exchange rates in such a perspective and the challenges facing fiscal policy, in view of the experience of recent years and in relation to objectives set in Denmark. Implementation of the exchange rate strategy;...

  • Pressure Mounts To Float Dirham.  // Africa Monitor: North Africa Monitor;May2005, Vol. 10 Issue 5, p3 

    This article reports that pressure for a more flexible exchange rate system will build this year. Since a new central bank statute was passed in January 2005, the Bank al-Maghrib theoretically has autonomy over monetary policy, but in reality, exchange rate management remains very much the...

  • THE REAL-INTEREST-RATE GAP AS AN INFLATION INDICATOR. Katharine S. Neiss; Edward Nelson // Macroeconomic Dynamics;Apr2003, Vol. 7 Issue 2, p239 

    A long-standing area of research and policy interest is the construction of a measure of monetary policy stance. One measure that has been proposed, as an alternative to indices that employ monetary aggregates or exchange rates, is the spread between the actual real interest rate and its...

  • Flexible exchange rates, tight money effects, and macroeconomic policy: reply. Ching-Chong Lai; Chau-Nan Chen // Journal of Post Keynesian Economics;Fall85, Vol. 8 Issue 1, p154 

    Responds to a commentary on an article comparing the relative effectiveness of fiscal and monetary policies under fixed and flexible exchange rates previously published in the fall 1984 issue of the 'Journal of Post Keynesian Economics.' Determination of policy effectiveness; Role of tight...

  • Exchange rates, tight money, and macroeconomic policy: a comment. Myatt, Anthony // Journal of Post Keynesian Economics;Fall85, Vol. 8 Issue 1, p151 

    Comments on an article comparing the relative effectiveness of fiscal and monetary policies under fixed and flexible exchange rates previously published in the fall 1984 issue of the 'Journal of Post Keynesian Economics.' Relative magnitude of expenditure switching and tight money effects;...

  • FLEXIBLE EXCHANGE RATES AND DOMESTIC POLICY: THE CANADIAN CASE. McTeer Jr., Robert Doyal // American Economist;Spring71, Vol. 15 Issue 1 

    Examines the ability of flexible exchange rates to insulate the domestic economy from foreign disturbances and free domestic policy from external constraints. Relationship of Canadian monetary and fiscal policies of 1950-62 to the flexible exchange rate; Unavoidable internal adjustments under...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics