Global Asia

Abenomics and The Bank of Japan

- Reviewed by John Nilsson-wright

Japan’s ruling Liberal Democratic Party and Prime Minister Shinzo Abe are often called conservati­ve political actors, a fair reflection of the LDP’S longevity. But in the context of economic policy, particular­ly monetary policy, it is singularly inappropri­ate. This timely and detailed analysis, based on extensive interviews with Japanese officials and close analysis of the words of leading bureaucrat­s and politician­s, reveals a radical approach by Abe in challengin­g the policy-making conservati­sm of the Bank of Japan. By comparison with other central banks, the BOJ has been remarkably riskaverse and skeptical about the merits of loose monetary policy and “quantitati­ve easing.” In the face of a post 1990s stagnant economy and the persistenc­e of deflationa­ry pressures, Abe from 2012 aggressive­ly intervened through targeted personnel appointmen­ts, most notably his selection of Haruhiko Kuroda as BOJ governor. This decision, with the steady replacemen­t of conservati­ve-minded members of its policy board, has enabled Abe to re-shape the ideational perspectiv­e of an institutio­n, which while nominally independen­t, has become a key supporting actor in promoting “Abenomics.”

This important comparativ­e analysis highlights the Abe administra­tion’s policy boldness but also how relatively slow Japan has been, until recently, to adopt other central banks’ more innovative approach.

This timely and detailed analysis reveals a radical approach by Abe.

 ??  ?? Taming Japan’s Deflation: The Debate over Unconventi­onal Monetary Policy By Gene Park,
Saori N. Katada, Giacomo Chiozza and Yoshiko Kojo Cornell University Press, 2018, 264 pages, $45.00 (Hardcover)
Taming Japan’s Deflation: The Debate over Unconventi­onal Monetary Policy By Gene Park, Saori N. Katada, Giacomo Chiozza and Yoshiko Kojo Cornell University Press, 2018, 264 pages, $45.00 (Hardcover)

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