Toshihiko Fukui, the Bank of Japan’s government was facing a complex situation in the autumn of 2007. Economic recovery had allowed the central bank to raise its zero interest rate policy, leave in place for years, and interest rates to 0.5%. The Bank of Japan was eager to ‘normal’ to increase to more exercise effective monetary policy. However, the appropriate timing and approach has been controversial, especially since the government did not want a rate hike could possibly hi … Read more »

Toshihiko Fukui, the Bank of Japan’s government was facing a complex situation in the autumn of 2007. Economic recovery had allowed the central bank to raise its zero interest rate policy, leave in place for years, and interest rates to 0.5%. The Bank of Japan was eager to ‘normal’ to increase to more exercise effective monetary policy. However, the appropriate timing and approach has been controversial, especially since the government did not want a rate hike could affect economic growth and the increase in the already high tax burden of debt.
«Hide

from
Laura Alfaro,
Akiko Kanno
Source: Harvard Business School
7 pages.
Release Date: 27 March 2009. Prod #: 709 056 PDF-ENG
Kinyuseisaku: Monetary Policy in Japan (B) HBR case solution