Financial Crisis and Bank of Japan: Rethinking the “Bagehot Rule
The Bank of Japan established an independent position from the government in 1998. That had been a long time hope since the BOJ was established in 1882. It is very ironical that the independent Bank of Japan has to have devoted itself to carry out emergency relief policies to cope with financial panic. The BOJ might have marched into inexperienced roads as a central bank, the lender of last resort (the LLR). This paper aims to examine the independent BOJs LLR policy during the first decade of the 21st century. The Japanese economy in this decade has suffered two consecutive financial crises caused both from a bust of assets bubbles. Case of the earlier half of the decade stemmed from a break of Japans assets bubble in the middle of 1980s, while case of the latter of half of the decade stemmed from the US subprime loan crisis in 2008. In the first half of this paper, we will overview the BOJs LLR policy in the decade. And in the second half we will assess these policies comparing to the Bagehot Rule and other variations. In the last part we are going to bring forward an issue whether the LLR should provide liquidities or capital.
bagehot rule formatting the zero interest rate policy the quantitative easing policythe quantitative easing policy
TSURUMI Masayoshi
Graduate School of Economics, Hosei University, Tokyo, Japan, 102-8160
国际会议
大连
英文
1-4
2009-06-29（万方平台首次上网日期，不代表论文的发表时间）