Japan's Economy and Monetary Policy

I have the privileged opportunity to speak before a large audience. That said, the moment of speech today has become a bit uncomfortable for me. Board of Directors and the Bank of Japan decided last week to the next monetary policy meeting today and tomorrow to discuss and decide on the most important conditions for the purchase of ETF (ETF) and the Japanese Real Estate Investment Trust (J- REITs), whose goal is to start with those purchases quickly. This is why in my speech today, which is based on the outlook for economic activity and prices were freed last week, I m going to talk about developments in the global economy, and above all on the Japanese economy and the evolution of prices and the bank comprehensive monetary easing Even though I starting to make it clear that there will be information that requires a decision on monetary policy meeting tomorrow, I hope that My speech today will be used to improve your understanding of economics in Germany and abroad, and the monetary policy of the bank. I. Evolution of the global economy of development in the global economy since the collapse of Lehman Brothers, I start with the changing global economy. The global economy plunged after the bankruptcy of Lehman Brothers in September 2008






Behind the economic slowdown were two factors. The first factor was a decline of panic in financial and economic activities due to financial crisis triggered by the bankruptcy of Lehman Brothers. This led to acute effects on the economy. The second factor that could mean that more fundamental, was the settlement of various excesses which had accumulated in the world until the mid-2000s mainly in the United States and Europe. It was a way to dispose of abuse such as excessive borrowing in the domestic sector, excess capacity in businesses, and impaired assets from financial institutions. Namely, the repair process and adjust the balances. During the repair process and adaptation, the activity of spending for each economic unit must be maintained. Therefore, chronic downward pressure is exerted on the economy in a longer period.