Quantitative Easing in Japan

Quantitative Easing in Japan

Japan became one of the world's largest, strongest and fastest growing economies in the decades after World War II, but this took a turn in the second half of the 1980s. Tim discusses this period as a valuable case study of what central banks should not do to battle severe economic distress.
Overview

The mis-timed rate decisions of the BoJ dating back to the 1980s and the failure to authoritatively and quickly address eroding confidence in banks has been the prevailing reason for its slow and timid growth. The main takeaway is that policy tools should be coordinated and comprehensive to keep an economy from spiralling downwards.

Key learning objectives:

  • Identify the atmosphere and environment leading up to the first round of QE

  • Discuss the effectiveness of QE1, QE2, and QQE

  • Explain why Japanese QE has been ineffective

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Summary
logo-animationlogo-animationlogo-animation
Expert
Tim Hall

Tim Hall

Tim has nearly 30 years of experience in the international capital markets at major global institutions and has worked both on the buy-side and the sell-side. He has worked with numerous companies, banks and governments in developed and emerging markets on investment grade and high yield bond issues, from straight-forward to very complex acquisition/leveraged financings. Tim has also been on the board of a UK “challenger bank.” Tim has an MBA from the Wharton School, and is a CFA.

Related videos

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.