Taming Japan's Deflation

Giacomo Chiozza, N. Katada Saori, Gene Park, Yoshiko Kojo

Description

Bolder economic policy could have addressed the persistent bouts of deflation in post-bubble Japan, write Gene Park, Saori N. Katada, Giacomo Chiozza, and Yoshiko Kojo in Taming Japan's Deflation. Despite warnings from economists, intense political pressure, and well-articulated unconventional policy options to address this problem, Japan's central bank, the Bank of Japan (BOJ), resisted taking the bold actions that the authors believe would have significantly helped.With Prime Minister Abe Shinzo's return to power, Japan finally shifted course at the start of 2013 with the launch of Abenomics-an economic agenda to reflate the economy-and Abe's appointment of new leadership at the BOJ. As Taming Japan's Deflation shows, the BOJ's resistance to experimenting with bolder policy stemmed from entrenched policy ideas that were hostile to activist monetary policy. The authors explain how these policy ideas evolved over the course of the BOJ's long history and gained dominance because of the closed nature of the broader policy network.The explanatory power of policy ideas and networks suggests a basic inadequacy in the dominant framework for analysis ofthe politics of monetary policy derived from the literature on central bank independence. This approach privileges the interaction between political principals and their supposed agents, central bankers; but Taming Japan's Deflation shows clearly that central bankers' views, shaped by ideas and institutions, can be decisive in determining monetary policy. Through a combination of institutional analysis, quantitative empirical tests, in-depth case studies, and structured comparison of Japan with other countries, the authors show that, ultimately, the decision to adopt aggressive monetary policy depends largely on the bankers' established policy ideas and policy network.

Sujets

• Histoire
• Monetary economics
• Political economy
• History of Asia
• Japan

Informations

• Publié par: Cornell University Press
• Date de parution: 15 novembre 2018
• Nombre de lectures: 0
• EAN13: 9781501728181
• Langue: English
• Poids de l'ouvrage: 2 Mo

Extrait

TAMING JAPAN’S DEFLATION

a volume in the series

Cornell Studies in Money

EditedbyEricHelleinerandJonathanKirshner

Alistoftitlesinthisseriesisavailableatcornellpress.cornell.edu.

TAMING JAPAN’S DEFLATION TheDebateoverUnconventional Monetary Policy

GenePark,SaoriN.Katada, GiacomoChiozza,and Yoshiko Kojo

CORNELL UNIVERSITY PRESS ITHACA AND LONDON

Copyright © 2018 by Cornell University

All rights reserved. Except for brief quotations in a review, this book, or parts thereof, must not be reproduced in any form without permission in writing from the publisher. For information, address Cornell University Press, Sage House, 512 East State Street, Ithaca, New York 14850. Visit our website at cornellpress.cornell.edu.

First published 2018 by Cornell University Press

Printed in the United States of America

Library of Congress CataloginginPublication Data Names: Park, Gene, author. | Katada, Saori N., author. | Chiozza, Giacomo, author. |  Kojo, Yoshiko, 1956– author. Title: Taming Japan’s deflation : the debate over unconventional monetary policy /  Gene Park, Saori N. Katada, Giacomo Chiozza, and Yoshiko Kojo. Description: Ithaca [New York] : Cornell University Press, 2018. | Series: Cornell  studies in money | Includes bibliographical references and index. Identifiers: LCCN 2018007696 (print) | LCCN 2018021284 (ebook) |  ISBN 9781501728181 (pdf) | ISBN 9781501728198 (epub/mobi) |  ISBN 9781501728174 (cloth : alk. paper) Subjects: LCSH: Monetary policy—Japan. | Deflation (Finance)—Japan. |  Nihon Ginkō. | Banks and banking, Central—Japan. | Japan—Economic  policy—1989– Classification: LCC HG1275 (ebook) | LCC HG1275 .P27 2018 (print) |  DDC 339.5/30952—dc23 LC record available at https://lccn.loc.gov/2018007696

Cover photo: iStock photo of Bank of Japan.

Thisbookisdedicatedtoourfamilies

Contents

ListofFiguresandTables PrefaceandAcknowledgments Acronyms NotesonConventions

1. Ideas, Networks, and Monetary Politics in Japan 2.  Deflation, Monetary Policy Responses, and the BOJ 3.  Monetary Politics: Interests, Ideas, and Policy Networks 4. The BOJ Worldview and Its Historical Development 5. The Monetary Policy Network 6.  Ideas and Monetary Policy: A Quantitative Test 7. Monetary Policymaking, 1998–2012 8. Abenomics and the Break with the BOJ Orthodoxy 9. Conclusion: Monetary Policy, Networks, and the Diffusion of Ideas

Appendix AppendixtoChapter5 AppendixtoChapter6 References Index

ix xi xv xvii

1 9 43 58 84 112 134 161

176

193 195 213 221 237

FiguresandTables

Figures 2.1. CDOEaulanntaoinilfte(nraitemall5–2011971s), 2.2. rpremusnocnienghacgetaenrcpelhyoMtnices (all items), yearonyear, 1996–2015 2.3. nerta(dIPC,)ygoodngfenerandetsmlliulidecx 1996–2015 2.4. ponaiMEOBB,ECB,BOJ,andilycrtaseofRF 2.5. etonyarsebaxpeMUSethnionsian,aeraoruE,KU, and Japan 2.6. ,quarterllyosanSaeearGDljuadedsttarybergPhtwo yearonyear: Japan, US, UK, Euro area 2.7. CnoenirrPusemIndicesexclex,niduofgdonghaC and energy by quarter, yearonyear 2.8. tiliseisaGeneralgvoremnnetrgsosfinancialliab percentage of GDP 2.9. laicnantilibailassieGlagnerenmenovertfitne percentage of GDP 4.1. Rate of change in CPI: 1971–1999 (%) 4.2. ineicprealesol:xedcentperthlyMonnhwegihcnagae 1970–1975 5.1. poycylikimanngteowkrnoMrate 5.2. BOJandPolicyhacalonrtrodraoBitazinag 6.1. tthasaJ:TeBOoPiedilycerevomitdeinsxefherou 6.2. tehfuopoltforelationCorsxedeinr 6.3. esyabteramontheeinhangcdetciderP 6A1. Hrgmasiotthesofrinfousexed

Tables 4.1. Jpanagvoreonsrfrom1945to19a89dnofkanB their previous affiliations

ix

1

0

1

8

19 21

2

2

26

27

33

34 72

74 89 101 125 126 130 213

67