Economics
The Bank of Japan's Never-Ending Crisis Is a Lesson to the World's Central Banks
- Global policy makers will need new tools in the next downturn
- Japan shows them what does (and doesn’t) work over long haul
The Bank of Japan headquarters in Tokyo.
Photographer: Akio Kon/BloombergThis article is for subscribers only.
Central bankers searching for options to fight the next downturn should look to Japan, where policy makers are gathering for a regular review of the world’s most epic monetary stimulus program.
The Bank of Japan’s two-decade journey from zero interest rates to massive asset purchases, negative rates and yield-curve control demonstrates a combination of tools that can be used to sustain stimulus -- along with the huge damage that piles up when it drags on too long.