Table of Contents

The evolution of central banking in Japan, up to the 1950s; phases of Japan's monetary-policy experience; exchange rates, policy co-ordination, and a Yen currency area; the bubble economy and its collapse; asset-price deflation - nonperforming loans, Jusen companies and regulatory inertia; elections, monetary policy and political business cycles; inflation, time inconsistency and central-bank indepedence.

Promotional Information

"Monetary policy in Japan, through the years of rapid growth, the bubbleeconomy,' the Japanese banking crisis, and now a weak economy but withvirtual price stability, is one of the most interesting stories in moderncentral banking. Cargill, Hutchison, and Ito tell this story well. Moreimportant, they analyze the interaction of the economics and theinstitutions in a way that makes clear the central role that partypolitics, business practices, international pressures and otherinstitutional constraints often play in shaping the conduct of actualmonetary policy." Benjamin M. Friedman , William Joseph Maier Professor of PoliticalEconomy, Harvard University

About the Author

Takatoshi Ito is Professor of Economics at the Graduate School of Economics, University of Tokyo.

Reviews

"Monetary policy in Japan, through the years of rapid growth, the 'bubble economy,' the Japanese banking crisis, and now a weak economy but with virtual price stability, is one of the most interesting stories in modern central banking. Cargill, Hutchison, and Ito tell this story well. More important, they analyze the interaction of the economics and the institutions in a way that makes clear the central role that party politics, business practices, international pressures and other institutional constraints often play in shaping the conduct of actual monetary policy." --Benjamin M. Friedman, William Joseph Maier Professor of Political Economy, Harvard University