Appointed in December 2012, Prime Minister Shinzo Abe became determined to revive Japan’s stagnant economy known through an ambitious plan ‘Abenomics.’ Accepted under the leadership of newly appointed Governor of the Central Bank, Haruhiko Kuroda, the Bank of Japan’s quantitative easing as its new monetary policy, pledging to the nation’s monetary base doubled in two years by buying long-term government bonds. While Kuroda insisted that Japan “any means necessary availa … Read More»

Appointed in December 2012, Prime Minister Shinzo Abe became determined to revive Japan’s stagnant economy known through an ambitious plan ‘Abenomics.’ Accepted under the leadership of newly appointed Governor of the Central Bank, Haruhiko Kuroda, the Bank of Japan’s quantitative easing as its new monetary policy, pledging to the nation’s monetary base doubled in two years by buying long-term government bonds. While Kuroda insisted that Japan “every means available” to fight deflation needed, critics wondered whether inflation would increase the nation’s public debt to unsustainable levels or exceed growth of wages. In addition, discuss whether skeptics Prime Minister Abe was wise to make the Bank of Japan, the main player in moving the nation toward economic growth. Others asked whether, unlike in the past, the Bank of Japan would take the necessary steps to implement the policy.
«Hide

from
Laura Alfaro,
Hilary White
Source: Harvard Business School
8 pages.
Release Date: 08 Begin in May 2013. Prod #: 713086-PDF-ENG
Kinyuseisaku: Monetary Policy in Japan (C) HBR case solution

[related_post themes="flat"]