The Transition of Japan Monetary Policy

Abstract

Japan's economy suffered a lot after the price bubble burst in the last three decades. In order to turn the decline tendency out, the Bank of Japan continued to adjust its monetary policy. The paper will mainly focus on monetary policy in Japan last 30 years. Firstly, the research will introduce the background of monetary policy change in Japan and three monetary policies implemented by the Bank of Japan: zero-interest-rate policy, quantitative easing, and quantitative and qualitative easing. Then, the research will build line charts and use linear regression to analyze the effects of monetary policies and test the relationship between monetary policy and economic factors in Japan. At the last of the research, the paper will summarize the findings from line chart and linear regression analysis.