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
Summary
Expert
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.
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