A Post-Reflation Monetary Framework for Japan
April 1, 2005
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Summary
Modifications to Japan's monetary policy framework will be needed as positive inflation resumes because the current monetary regime and operations are tailored to ending deflation. The paper suggests that the monetary regime should move from an "anti-deflation" objective to an inflation objective, complemented by a shift of monetary operations from a quantitative operating target to an interest rate target. There are also questions about the timing of these shifts and the particulars of such arrangements, but decisive answers are elusive.
Subject: Deflation, Inflation, Inflation targeting, Price stabilization, Unconventional monetary policies
Keywords: BoJ operation, inflation expectation, inflation objective, inflation report, report need, transmission mechanism, WP
Pages:
28
Volume:
2005
DOI:
Issue:
073
Series:
Working Paper No. 2005/073
Stock No:
WPIEA2005073
ISBN:
9781451860924
ISSN:
1018-5941
