Japanese Monetary Policy

Monetary policy by central banks other than the Federal Reserve is of proper concern to the SOMC for two reasons: (i) monetary conditions in the rest of the world have significant effects on U.S. macroeconomic performance and vice-versa, and (ii) policy procedures, institutions, and developments elsewhere may have important lessons for the United States. In recent years, Japanese monetary policy has been the topic of a great deal of discussion, commentary, and debate. Accordingly, this paper considers issues relating to recent and prospective policy measures of the Bank of Japan (BOJ).