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Abstract

Vol. 66, No. 2, pp. 97-114 (2015)

“Objectives and Makings of Monetary Policy in Japan”
Kazumi Asako (Faculty of Economics, Rissho University), Christopher Spencer (School of Business and Economics, Loughborough University), Zhentao Liu (Institute for Financial and Accounting Studies, Xiamen University)

We attempt to identify significant objectives of monetary policy for the period from 1990 to 2013 and compare the results to those obtained by Asako and Kanoh (1997) for an earlier sample period. With the introduction of nontraditional monetary policy management such as zero-interest-rate policy and quantitative-easing policy, we find and examine some important shifts in the role of government bonds modeled by Asako and Kanoh as one of five stabilizing objectives of the monetary policy. We also look into the making of the monetary policy by focusing on the votes by the Bank of Japan Policy Board members.