1 GETTING OUT OF DEFLATION AN EXPERIENCE OF UNCONVENTIONAL MONETARY POLICY 1 Bank of Japan Shinichi Uchida
2 Prologue (1990) 2
3 IN 1990 I was an LLM Student at HLS. 3
4 600 CY 1980=100 AT THAT TIME Japan was at the peak of Bubble Economy. The land prices and stock prices more than tripled. You can buy all lands of the USA in exchange of Tokyo Stock prices Land prices CY Sources: Bloomberg; Ministry of Land, Infrastructure, Transport and Tourism. 4
5 BUT Bubble economy collapsed in early 1990s. The economy slowed down and the land prices and stock prices dropped sharply CY 1980=100 Stock prices Land prices CY 5 Sources: Bloomberg; Ministry of Land, Infrastructure, Transport and Tourism.
6 THEN Banks balance sheets were deteriorated: nonperforming loan problem Some large commercial and investment banks failed in 1997 and 1998: financial crisis 4 % Credit cost ratio 0 FY Source: Bank of Japan.
7 Chapter 1 Era of Deflation (1998- ) 7
8 15 YEARS OF DEFLATION STARTED Coupled with the slowdown of economic growth and financial system problems, inflation rate became negative in years of deflation started. 5 y/y % chg. 4 3 CPI CY Source: Ministry of Internal Affairs and Communications.
9 FOOTNOTE: IS DEFLATION A PROBLEM? It is easy to understand that inflation is a problem. Under 10% inflation, you have to pay $110 to buy a book you could buy at $100 last year. Value of your $ 100 bill declines by 10% every year. It s a problem 9
10 FOOTNOTE: IS DEFLATION A PROBLEM? But, Under deflation, you can buy the book at $90. Is it a problem? Yes, it is a problem for Book Store, Author of the Book, Bank which lent money to the Book Store.. 10
11 EPISODE OF DEFLATION - 1 The Great Depression ( ) 6 y/y % chg Unemployment rate 25% -8 CPI % deflation -12 CY Source: Bureau of Labor Statistics.
12 CY EPISODE OF DEFLATION - 2 Japan (1998- ) y/y % chg. CPI average inflation rate - 0.2% ( ) Source: Ministry of Internal Affairs and Communications.
13 THE GREAT DEPRESSION VS. JAPAN S DEFLATION The Great Depression: sharp decline in prices in a very short period Japan s Deflation: mild but very persistent decline in prices 13
14 WHAT HAPPENED IN 15 YEARS OF DEFLATION? Companies stopped investing and held cash & deposit s.a., tril.yen Cash and bank deposits (left scale) Business fixed investment (right scale) s.a., tril.yen CY Source: Ministry of Finance.
15 WHAT HAPPENED IN 15 YEARS OF DEFLATION? 6 Household accepted wage decline in exchange for job security %, y/y % chg Unemployment rate Nominal wage -6 CY Sources: Ministry of Internal Affairs and Communications; Ministry of Health, Labour and Welfare.
16 WHAT HAPPENED IN 15 YEARS OF DEFLATION? Government spent more CY % of GDP Deficit Source: OECD.
17 WHAT HAPPENED IN 15 YEARS OF DEFLATION? Banks bought government bonds 1,400 1,300 1,200 1,100 1, FY tril.yen Loans Deposits Source: Bank of Japan. Government bonds 17
18 WHAT HAPPENED IN 15 YEARS OF DEFLATION? Is it all right? No, it is not sustainable. Slow economic growth, decline in wage and prices, more fiscal deficit and bad environment for bank s profitability So we have to change! 18
19 Chapter 2 Battle with Deflation #1 ( ) 19
20 ZERO INTEREST RATE POLICY ( ) To stop deflation, the Bank of Japan cut the interest rate. The policy rate (overnight rate) became 0% in % Overnight rate CY Source: Bank of Japan.
21 FOOTNOTE: CONVENTIONAL MONETARY POLICY Usually a central bank raises or cuts interest rate to stabilize economy and inflation. If economy slows and inflation rate drops, central bank cuts interest rate. Companies can borrow money cheaper, and buy more machines. Consumers can borrow money and buy more cars and houses. Stimulate economy and prices. 21
22 QUANTITATIVE EASING ( ) Interest rate was already 0% and the Bank of Japan can not cut the rate. So the Bank introduced the first Unconventional Policy: QE Increase the volume of money BoJ provided more money to financial institutions. (effective for preventing bank runs, but the effects on the economy was unclear) Promise to keep 0% for some time BoJ promised to continue QE until CPI become 0% or higher. (Long-term interest rates dropped, which boosted the economy) 22
23 RESTORE SOUNDNESS OF BANKING SYSTEM In addition to monetary policy measures, the government and the BoJ introduced several prudential policy measures. Capital injection to banks By the Bank of Japan: 0.2 trillion yen ( ) By the Government: 10.4 trillion yen ( ) The Bank of Japan bought stocks from financial institutions (2002). 23
24 RESTORE SOUNDNESS OF BANKING SYSTEM By mid-2000s, non-performing loan problem was over and Japanese banks became healthy. 10 % 9 8 Nonperforming-loan ratio FY Source: Bank of Japan.
25 IN , Consumer price index (CPI) became positive. We thought deflation will end soon. But. 2 y/y % chg. CPI CY 25 Source: Ministry of Internal Affairs and Communications.
26 GLOBAL FINANCIAL CRISIS IN 2008 Subprime loan problems in US Lehman Brothers failed in September 2008 While Japanese banking system kept soundness, Japan s economy was hit by the contract of world economy and sharp appreciation of the yen. Deflation continued. 26
27 Chapter 3 Battle with Deflation #2 <after the global financial crisis> (2008-) 27
28 CENTRAL BANKS INTRODUCED UNCONVENTIONAL POLICIES Central banks acted quickly to address global financial crisis (learning from Japan s bitter experience). Federal Reserve introduced QE in Larger scale than the BoJ s QE ( ). Buy long-term government bond to push down longterm interest rates directly. 28
29 INTRODUCTION OF QQE (2013) In April 2013, the Bank of Japan introduced Quantitative and Qualitative Monetary Easing QQE. Commit to achieve 2% price stability target strongly Provide money very aggressively Purchase government bonds in large scale This is the largest monetary easing ever in the history of central banks. Bank of Japan s balance sheet more than doubled. The Bank holds more than 30% of total government bonds. 29
30 HOW QQE WORKS Massive Bond Purchases Clear Commitment to achieve 2%CPI nominal interest rates-inflation expectations = real interest rates boost economy and inflation To stimulate the economy, real interest rate is important. 30
31 FOOTNOTE: TO STIMULATE THE ECONOMY, REAL INTEREST RATE IS IMPORTANT. Suppose you are a producer of toys. You have to decide whether you buy a machine to produce 1000 toys in one year. It costs $100 thousands. A bank offers you a loan (interest rate 2%). You can sell the toy at $100 now. Case 1 (3% inflation): When you think you can sell the toys at $103 next year, you should buy the machine. You will earn $103k and pay $102 k to the bank. So net profit is $1k. Case 2 (3% deflation): If you think you can sell it at $97 next year, you should not. You will lose $5k. In Case 1, 2% nominal interest rate is low enough for you (real interest rate is -1%), but in Case 2, too high. 31
32 HOW QQE WORKS Massive Bond Purchases Clear Commitment to achieve 2%CPI nominal interest rates-inflation expectations = real interest rates boost economy and inflation Long-term interest rates (10-year yields of JGB) Inflation expectations (ESP Forecasts: 7-11y ahead) Before QQE 0.7% (2013/1Q) 1.0% (2012/Dec) Now Real Interest Rate -0.3% -1.2% 0.2% (2016/Jan) 1.4% (2015/Dec) 32 about 1% decline
33 UNDER QQE: ECONOMIC ACTIVITIES Corporate sector is enjoying record profits. Unemployment rate is 3.3% = full employment. 20 s.a., tril. yen 6 s.a., % Corporate profits 4 2 CY Unemployment rate 3 CY Note: Figures for corporate profits exclude those for the finance and insurance industries. Sources: Ministry of Finance; Ministry of Internal Affairs and Communications.
34 UNDER QQE: PRICES CPI became positive but less than 2%. Effects of a decline in oil prices 3 y/y % chg. 2 1 Introduction of QQE 0-1 CPI (all items) -2 CPI (all items less fresh food and energy) -3 CY Source: Ministry of Internal Affairs and Communications.
35 QQE WITH A NEGATIVE INTEREST RATE To achieve 2% inflation, the Bank introduced QQE with a Negative Interest Rate last month. Apply a negative interest rate of minus 0.1 % to current accounts that financial institutions hold at the Bank of Japan. (charge 0.1% fees) Push down the interest rate more. 35
36 FOOTNOTE: WHAT IS A NEGATIVE INTEREST RATE? Usually, you have to pay money to the bank if you borrow student loans. And you will get some money if you deposit to the bank. In Japan, financial institutions have to pay money when they deposit to the BoJ. This will not happen between a bank and its customers. They will withdraw and hold cash. But possible between a central bank and banks. Holding huge amount of cash costs a lot. Only small negative: largest negative rate is minus 1.25 % in Sweden. 36
37 INTEREST RATES AFTER THE INTRODUCTION OF A NEGATIVE INTEREST RATE Before the introduction of NIR Now Current account at the BoJ +0.1% -0.1% Markets O/N interbank 0.074% % 5Y JGB 0.02% -0.16% 10Y JGB 0.23% 0.01% Banks Bank lending rate 0.9% will be lower Bank deposit rate For retail 0.02% NIR unlikely For corporate nealy 0% become negative? 37
38 FOOTNOTE: WHY 2%? Why does the Bank of Japan try to achieve 2%, rather than 0%? Global standard: US: 2% Europe: below but close to 2% Price index has some positive statistical bias. To avoid deflation, small positive inflation is better than zero inflation. 38
39 WHAT A CENTRAL BANK CAN DO, AFTER IT LOWERED ITS POLICY RATE TO 0%? Push down long-term interest rate: Japan, US by commitment to continue 0% by purchase of long-term bonds Negative interest rate: Denmark, Sweden, Switzerland, Euro, Japan by imposing fees on the accounts of financial institutions Push up inflation expectations: Japan by strong commitment to achieve 2% target 39
40 COSTS & RISKS OF QQE Potential moral hazard of fiscal policy Market function weakened Squeeze banks profits Hard to exit Benefits > Costs & Risks 40
41 Epilogue Is it only Japan? 41
42 JAPAN S EXPERIENCE Burst of bubble (early 1990s) 1. Deleveraging : financial system problems & balance sheet adjustment of corporate sector (finished by mid-2000s) 2. Confidence Crisis: widespread deflationary mindset (eased but still remains) Weak economic growth and prolonged deflation 42
43 US CASE Burst of bubble (2008) 1. Deleveraging : financial system problems & debt overhang of household (almost finished) 2. Confidence Crisis: weak capital investments and wages (still remains) Weak economic growth trend 43
44 EURO CASE Burst of bubble (2008) 1. Deleveraging : credit crunch & sovereign debt problem (still hot issue) 2. Confidence Crisis: from now? Fear of deflation 44
45 IS IT ONLY JAPAN? Labor Productivity y/y % chg. Burst of bubble (Japan) Global financial crisis Japan United States United Kingdom y/y % chg. Global financial crisis Germany France Italy CY CY Source: OECD.
46 CONCLUDING REMARKS Japan is getting out of its 15 years of deflation by the Bank of Japan s extraordinary policy measure, QQE. We have tried and will try everything. 46
47 CONCLUDING REMARKS Lesson1: Avoid deflation. Once trapped, it costs a lot. Lesson2: Promise to do whatever the central bank can do, to make people believe that the deflation will be over. Lesson3: Burst of financial bubble may cause deleveraging, lack of confidence, slow growth and deflation. Good luck to Europe & US. 47
Japan s Economic Challenges LUC EVERAERT ASIA PACIFIC DEPARTMENT INTERNATIONAL MONETARY FUND UNIVERSITY OF TOKYO JANUARY 18, 216 1 Global Overview I. Global outlook and risks II. Prospects for Japan III.
World Economy Liquidity Trap 1 Liquidity Trap Liquidity trap refers to a state in which the nominal interest rate is close or equal to zero and the monetary authority is unable to stimulate the economy
August 27, 2016 Bank of Japan Re-anchoring Inflation Expectations via "Quantitative and Qualitative Monetary Easing with a Negative Interest Rate" Remarks at the Economic Policy Symposium Held by the Federal
Lecture 4: The Aftermath of the Crisis 2 The Fed s Efforts to Restore Financial Stability A financial panic in fall 2008 threatened the stability of the global financial system. In its lender-of-last-resort
PUBPOL 556 Macroeconomics Winter 2001 Country Project Macroeconomic Analysis of the Monetary Policy in Japan Yuichi Koshiba Akifumi Nakao Takashi Baba Executive Summary In retrospect, both monetary and
Financial Crisis and Long-term Stagnation in Japan: Fiscal Consolidation under Deflationary Pressures Paper for New York University Workshop October 7-8, 2010 Mitsuhiro Fukao 1 Keio University and Japan
Japan Economic Monthly Improved Corporate Growth Expectations Hold the Key to Higher Wages in Spring Wage Negotiations REI TSURUTA TOORU KANAHORI ECONOMIC RESEARCH OFFICE 25 FEBRUARY (ORIGINAL JAPANESE
February 3, 2016 Bank of Japan Introduction of "Quantitative and Qualitative Monetary Easing with a Negative Interest Rate" Speech at the Kisaragi-kai Meeting in Tokyo Haruhiko Kuroda Governor of the Bank
MONETARY POLICY, THE MONEY SUPPLY AND INTEREST RATES A2 Economics The Specification Introductory Research/Reading Task Go To: http://www.bankofengland.co.uk/monetarypolicy/index.htm Create a Fact Sheet
Economic Outlook 29/21 s Twenty-Eighth Annual Forecast Luncheon Paul R. Portney Dean, Professor of Economics, and Halle Chair in Leadership Marshall J. Vest Director Economic and Business Research Center
Project LINK Meeting New York, - October 1 Country Report: Australia Prepared by Peter Brain: National Institute of Economic and Industry Research, and Duncan Ironmonger: Department of Economics, University
BANK OF FINLAND Monetary Policy and Research - Financial Markets and Statistics Main Indicators for the Finnish Economy 1/11 January 1 January 11 Monetary Policy and Research - Financial Markets and Statistics
BANK OF FINLAND Monetary Policy and Research - Financial Markets and Statistics Main Indicators for the Finnish Economy 3/11 17 March 11 Main Indicators for the Finnish Economy is produced jointly by the
Except for China (& Ukraine), OK? Global economic & market outlook Riga, May 28, 2014 Harald Magnus Andreassen +47 23 23 82 60 firstname.lastname@example.org Usually, it has paid well off to be a sober optimist Usually,
Rising Foreign Debt, Slow Economic Growth and High Unemployment: A brief explanation of their cause in Australia and how to overcome them by Leigh Harkness Economic theories may appear rational when explained
A Tour of The World CHAPTER 1 CHAPTER 1 Applied Macroeconomics Delia Gramm (EURAC, Bozen), Stefan Gruber (Universität Bologna) 1-1 The United States Figure 1-1 The United States, 2003 Applied Macroeconomics
BANK OF FINLAND Monetary Policy and Research - Financial Markets and Statistics Main Indicators for the Finnish Economy /1 13 April 1 13 April 1 Monetary Policy and Research - Financial Markets and Statistics
Chapter 12: Gross Domestic Product and Growth Section 1 Key Terms national income accounting: a system economists use to collect and organize macroeconomic statistics on production, income, investment,
IMF STAFF POSITION NOTE March 18, 9 SPN/9/5 Why Has Been Hit So Hard by the Global Recession? Martin Sommer I N T E R N A T I O N A L M O N E T A R Y F U N D INTERNATIONAL MONETARY FUND Why Has Been Hit
Japan Economic Monthly Sustained Strong Corporate Profits Point to Increasing Employment and Capital Expenditures REI TSURUTA TOORU KANAHORI ECONOMIC RESEARCH OFFICE 1 OCTOBER (ORIGINAL JAPANESE VERSION
THE GREAT DEPRESSION OF FINLAND 1990-1993: causes and consequences Jaakko Kiander Labour Institute for Economic Research CONTENTS Causes background The crisis Consequences Role of economic policy Banking
CHAPTER 8 Why Do Financial Crises Occur and Why Are They So Damaging to the Economy? Copyright 2012 Pearson Prentice Hall. All rights reserved. Chapter Preview Financial crises are major disruptions in
Defining Surpluses and Debt Politics, Surpluses,, and Debt Chapter 11 A surplus is an excess of revenues over payments. A deficit is a shortfall of revenues relative to payments. 2 Introduction After having
Economic Outlook for Europe and Finland Finnish-British Chamber of Commerce 15 March 213 Seppo Honkapohja Member of the Board Bank of Finland 1 World economy: World industrial output improved, but international
CHAPTER 7: AGGREGATE DEMAND AND AGGREGATE SUPPLY Learning goals of this chapter: What forces bring persistent and rapid expansion of real GDP? What causes inflation? Why do we have business cycles? How
The Impact of the Financial Crisis on Developing Countries Justin Yifu Lin Senior Vice President & Chief Economist, The World Bank Outline Why was the global economy so dynamic in 2002-07? Why has that
ECONOMICS ECONOMIC RESEARCH 7 November - No. 9 Are there good reasons not to accept % inflation in the euro zone? The ECB is going to adopt an even more expansionary monetary policy, with the risks that
Chartbook Contact: Sebastian Becker +49 69 91-3664 Global Risk Analysis The unwinding of Yen carry trades Some empirical evidence 3 2 1-1 -2-3 -4 October 31, 28 Many years before the sub-prime crisis hit
Discussion of Negative Interest Rate Policy (NIRP) March 23-24, 2016 Jason Weiner Director of Fixed Income Goals of Negative Interest Rate Policy (NIRP) 1) Boost economic growth and avoid deflation. 2)
Outlook for theus Dollar The US dollar staged one of its most powerful rallies in August, with the 1 rising nearly 6% 2 that month. The breadth of the rally was also impressive, with the currency rising
Bank of Japan Review 213-E-2 Japanese Life Insurance Companies' Balance-Sheet Structure and Japanese Government Bond Investment Financial System and Bank Examination Department Kazutoshi Kan, Yoshiyuki
Chapter 6: The Price Level and Measuring the Price Level and Microeconomic causes changes in individual markets can explain only a tiny fraction of price change For the most part, price rises came about
We Need to Prepare Ourselves for Higher Interest Rates Summary If deflation continues to be coming to an end in Japan, then interest rates are expected to rise significantly in the mid- and long-terms.
December 215 Has Austerity Worked in Spain? By David Rosnick and Mark Weisbrot* Center for Economic and Policy Research 1611 Connecticut Ave. NW Suite 4 Washington, DC 29 tel: 22-293-538 fax: 22-588-1356
December 24, 2015 Bank of Japan At the Turning Point Speech at the Meeting of Councillors of Nippon Keidanren (Japan Business Federation) in Tokyo Haruhiko Kuroda Governor of the Bank of Japan (English
Bank of Japan Review 212-E-1 Global correlation among government bond markets and Japanese banks' market risk Financial System and Bank Examination Department Yoshiyuki Fukuda, Kei Imakubo, Shinichi Nishioka
The U.S. and Midwest Economy in 2016: Implications for Supply Chain Firms Rick Mattoon Senior Economist and Economic Advisor Federal Reserve Bank of Chicago Right Place Supply Chain Management Conference
Chronic deflation in Japan 1 Kenji Nishizaki, Toshitaka Sekine, Yuichi Ueno and Yuko Kawai 2 Abstract This short paper is an abbreviated version of Nishizaki et al (2012). Japan has suffered from long-lasting
International Conference, Cabinet Office Tokyo, May 2013 War and Peace among Currencies: Spillover of Monetary Policy in the age of Quantitative Easing Takatoshi ITO Abstract Currency Wars was coined by
Geoff Riley Head of Economics, Eton College Co-Founder of Green Shootsor Heading for a slump? Outline of today s presentation Recession winners and losers Recession -causes and policy responses When will
Suomen Pankki The euro area economy, ECB monetary policy and its transmission in the euro area and Finland Euro & talous, 9 June 2016 1 Euro area economic growth is broadly based, but inflation still slow.
Forecasting Chinese Economy for the Years 2013-2014 Xuesong Li Professor of Economics Deputy Director of Institute of Quantitative & Technical Economics Chinese Academy of Social Sciences Email: email@example.com
1999/8 17 December 1999 A layperson s guide to Executive Summary Monetary policy refers to those actions by the Reserve Bank which affect interest rates, the exchange rate and the money supply. The objective
Why Treasury Yields Are Projected to Remain Low in 5 March 5 PERSPECTIVES Key Insights Monica Defend Head of Global Asset Allocation Research Gabriele Oriolo Analyst Global Asset Allocation Research While
10. When monetary policy becomes ineffective: liquidity traps. A liquidity trap is a situation in which monetary policy becomes ineffective because the policymaker s attempt to influence nominal interest
Overcoming the Crisis Klaus Regling, Managing Director, ESM Bank of Greece Athens, 10 July 2014 Reasons for the crisis The crisis was caused by a very specific mix of circumstances: Excessive deficit/debt
Production and Unemployment The The was by far the most severe economic downturn in the history of the United States. It began in 1929 and ended in 1940, with the trough in 1933. 1 From the peak to the
The New Era of Negative Household Savings Rate Jun Saito, Senior Research Fellow Japan Center for Economic Research January 5, 2015 Household savings rate turned negative in 2013 The 2015 Annual Report
1ST QUARTER 2015 N0 1 NEWS FROM DANMARKS NATIONALBANK PROSPECT OF HIGHER GROWTH IN DENMARK Danmarks Nationalbank adjusts its forecast of growth in the Danish economy this year and next year upwards. GDP
The Exchange Rate as a Monetary Policy Instrument: CNB Experience Miroslav Singer Governor, Czech National Bank Monetary Policy Challenges in a Changing World Zurich, 12 May 2015 M. Recent Developments
1 Objectives for Chapter 10 The Circular Flow Model At the end of Chapter 10, you will be able to answer the following: 1. Explain the basic circular flow model. 2. Define "consumption" and "saving" 3.
Macroeconomic Imbalances Factsheet Introduction Since the outbreak of the credit crunch crisis in 2008, and the subsequent European debt crisis, it has become clear that there are large macroeconomic imbalances
2012: Deeper into crisis or the long road to recovery? Bart Van Craeynest Hoofdeconoom Petercam Bart.firstname.lastname@example.org 1 2012: crises looking for answers Global slowdown No 2008-0909 rerun Crises
Page 1 of 5 Interest Rate Insurance Prices Implicit in Option Prices June 16, 2015 (#2015-13) Douglas T. Breeden William W. Priest Professor of Finance, Fuqua School of Business, Duke University and Senior
4 : What It Is and How It Works MACROECONOMICS N. Gregory Mankiw Modified for EC 204 by Bob Murphy PowerPoint Slides by Ron Cronovich 2013 Worth Publishers, all rights reserved IN THIS CHAPTER, YOU WILL
The Global Economic Impacts of Oil Price Shocks Presented to: Project LINK, United Nations New York, NY November 22, 2004 Presented by: Sara Johnson Managing Director, Global Macroeconomics Group 781-301-9115
Chapter 11 International Economics II: International Finance The other major branch of international economics is international monetary economics, also known as international finance. Issues in international
Chapter 12 Monetary Policy and the Phillips Curve By Charles I. Jones Media Slides Created By Dave Brown Penn State University The short-run model summary: Through the MP curve the nominal interest rate
2013 global economic outlook: Are promising growth trends sustainable? Timothy Hopper, Ph.D., Chief Economist, TIAA-CREF January 24, 2013 U.S. stock market performance in 2012 * +12.59% total return +6.35%
International Finance Master PEI Nicolas Coeurdacier Sample exam Documents and calculator not allowed. For the essay questions, please be precise but concise in your answers. I. Multiple choice questions
Australian Capital Flows and the financial Crisis Introduction For many years, Australia s high level of investment relative to savings has been supported by net foreign capital inflow. This net capital
CNB s New Forecast (Inflation Report II/2015) Meeting with Analysts Petr Král Prague, 11 May, 2015 1 Outline Assumptions of the forecast The new macroeconomic forecast Comparison with the previous forecast
Douglas, Fall 2009 December 15, 2009 A: Special Code 00004 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Section 4 Final Exam 1. Oceania buys $40
Name: Date: 1 A measure of how fast prices are rising is called the: A growth rate of real GDP B inflation rate C unemployment rate D market-clearing rate 2 Compared with a recession, real GDP during a
1. The financial crisis of 2007/2008 and its impact on the UK and other economies Do you still feel vague about the causes and the effects of the financial crisis of 2007/8? Are you preparing for a job
Africa Economists Retreat, December 5, 2008 The Impact of the Financial Crisis on South Africa Phindile Ngwenya and Michele Zini PREM Pretoria Country Office Outline The Economic Background Recent Developments
Macroeconomics, 10e, Global Edition (Parkin) Chapter 24 Finance, Saving, and Investment 1 Financial Institutions and Financial Markets 1) The term "capital," as used in macroeconomics, refers to A) the
2.5 Monetary policy: Interest rates Learning Outcomes Describe the role of central banks as regulators of commercial banks and bankers to governments. Explain that central banks are usually made responsible
(December ) Observation of the monetary easing measures taken so far and the future outlook of the RMB money market Reiji Tsuda China Treasury Division Mizuho Bank (China) Ltd. email@example.com
January 29, 2016 Bank of Japan Introduction of "Quantitative and Qualitative Monetary Easing with a Negative Interest Rate" 1. At the Monetary Policy Meeting held today, the Policy Board of the Bank of
2012 HIGHER SCHOOL CERTIFICATE EXAMINATION Economics Total marks 100 Section I Pages 2 8 20 marks Attempt Questions 1 20 Allow about 35 minutes for this section General Instructions Reading time 5 minutes
Haruhiko Kuroda: Crude oil prices and price stability Speech by Mr Haruhiko Kuroda, Governor of the Bank of Japan, at the Japan National Press Club, Tokyo, 27 February 2015. * * * Accompanying charts can
March 15, 2016 Bank of Japan Statement on Monetary Policy 1. At the Monetary Policy Meeting (MPM) held today, the Policy Board of the Bank of Japan decided upon the following. (1) Quantity Dimension: The
How Europe is Overcoming the Euro Crisis? Klaus Regling, Managing Director, ESM University of Latvia, Riga 3 March 2014 Eight reasons for the sovereign debt crisis 1. Member States did not fully accept
The Central Bank from the Viewpoint of Law and Economics Handout for Special Lecture, Financial Law at the Faculty of Law, the University of Tokyo Masaaki Shirakawa Governor of the Bank of Japan October
INTERNATIONAL ECONOMIC PERFORMANCE SINCE THE STOCK MARKET BUBBLE A JOINT ECONOMIC COMMITTEE STUDY Vice Chairman Jim Saxton (R-NJ) Joint Economic Committee United States Congress March 2004 Executive Summary
N O R T H E R N T R U S T G L O B A L E C O N O M I C R E S E A R C H If Some Dare Call It Treason, Was Milton Friedman a Traitor? September 211 Paul L. Kasriel, Chief Economist PH: 312.444.4145 4 4 firstname.lastname@example.org
BANK OF ISRAEL Office of the Spokesperson and Economic Information January 12, 2015 Report to the public on the Bank of Israel s discussions prior to deciding on General the interest rate for January 2015
The Debt Challenge in Europe Alan Ahearne and Guntram Wolff October 2011 Outline The challenge: debt overhang and price adjustment. Large increase in private debt prior to the crisis. Balance-sheet adjustments
John Iannis Mourmouras: Global risks in an era of negative interest rates Speech by Professor John Iannis Mourmouras, Deputy Governor of the Bank of Greece, at the Asset and Risk Management Seminar for
Haruhiko Kuroda: Quantitative and qualitative monetary easing Speech by Mr Haruhiko Kuroda, Governor of the Bank of Japan, at a meeting held by the Yomiuri International Economic Society, Tokyo, 12 April
WELCOME TO THE WEBINAR WEBINAR LINK: HTTP://FRBATL.ADOBECONNECT.COM/ECONOMY/ DIAL-IN NUMBER (MUST USE FOR AUDIO): 855-377-2663 ACCESS CODE: 71032685 Euro Zone s Economic Outlook and What it Means for the
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Of the four players in the money supply process, most observers agree that the most important player
Chapter 5 Saving and Investment in the Open Economy Chapter Outline Balance of Payments Accounting Goods Market Equilibrium in an Open Economy Saving and Investment in a Small Open Economy Saving and Investment