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