Japan Financial Research Report
  The Effects of BOJ’s Quantitative and Qualitative Monetary Easing with YCC: Follow-up Report
Narrowing Monetary Policy Options
- Can FTPL be an effective means of escaping deflation?

  JCER Financial Research Team
   Kazumasa IWATA (President of JCER)
   Ikuko FUEDA-SAMIKAWA (Principal Economist)
   Eriko TAKAHASHI (Senior Economist)

  In September 2016, the Bank of Japan (BOJ) switched from a policy of "quantitative and qualitative monetary easing (QQE) with a negative interest rate," only just introduced in January 2016, to "QQE with yield curve control (YCC)." The central bank removed the term "a negative interest rate" from the policy title, hoping to soften people's negative response to its connotations and lessen the blow to institutional investors of an excessive decline in interest rates in the super-long end of the Japanese Government Bond (JGB) market. However, since the adoption of YCC, there has been no significant change in the amount of JGBs purchased by the BOJ compared to before. Can the BOJ control the long-term yield curve? Is there not a sense of deadlock in monetary policy? This report assesses the effects and risks of the most recent monetary policy framework.

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Back Numbers of Japan Financial Report
No.32: BOJ's JGB Purchasing Limits to be Reached in Summer 2017
- Is the Bank carrying out Fiscal Policy? (28/NOV/16)
No.31: From Quantity to Interest Rate Focus: BOJ Drops Monetary Base Target
- Flexible JGB Buying Added as Long-Term Interest Rate Policy Focus (21/SEPT/16)
No.30: Risks and Challenges for BOJ after breaking through ZLB
- Accelerate move toward establishing a "Cashless Society" (13/APR/16)
No.29: Risks from Extending the QQE Policy
- Bank of Japan’s JGB Purchases to reach Limits in June 2017(27/JAN/16)
No.28: Surprise Supplementary Measures for QQE Announced
- BOJ plays down Concerns over JGB Purchasing Limits?(21/DEC/15)
No.27: Plunge in New Housing Starts Means Existing Homes Market Expansion Is Key(JAN/15)
No.26: Regional Finance in an Age of Population Decline(JAN/15)
No.25: Quantitative and Qualitative Monetary Easing Effects and Associated Risks(DEC/13)
No.24: Opportunities and Risks for Japan's Financial Industry to Ensure Growth(APR/13)
No.23: Financial Markets Grope for Stability and Growth:Nagging Impaired Loan Assets, Currency Worries(APR/12)
No.22: Options for Kick-Starting Economy amid Risks of Worsened Deflation(MAR/10)
No.21: Global Crisis Testing Financial Strength of Banks and Life Insurance Firms(NOV/09)
No.20: Deflation Outlook Worse than Nineties(MAR/09)
No.19: The U.S.-Sparked Financial Crisis and the Japanese Financial System(OCT/08)
No.18: Prices and Monetary Policy in Times of Rising Energy Prices(MAR/08)
No.17: From Recovery to Reform:The Future Direction for Regional Banks and Life Insurance Companies(OCT/07)
No.16: The Downside Risks in the Japanese Economy(MAR/07)
No.15: We need to prepare ourselves for higher interest rates(OCT/06)
No.14: Public lenders need tough oversight(MAR/06)
No.13: Postal Privatization in Japan and the Future of Banks and Life Insurers (OCT/05)
(PDF) E1 E2 E3
No.12: China Strikingly Similar to 1971 Japan(MAR/05)
No.11: Japan's Pension Reform and the Current Status of Banks and Life Insurers (OCT/04)
(PDF) E1 E2 E3
No.10: Three downside risks in the economy (MAR/04)
No.9: The Profitability of Japanese Industries: Non-financial Sectors, Banks and Life-Insurance Companies (OCT/03)
(PDF) E1 E2 E3
No.8: Accelerating Deflation and Monetary Policy (MAR/03)
No.7: The deteriorating Japanese financial system (OCT/02)
No.6: Credibility of Government, Corporate, and Banking Sectors in Japan (MAR /02)
No.5: Deflation and Financial System Reform in Japan (OCT /01)
(PDF) E1 E2 E3 E4
No.4: Manipulation of Monetary Policy under Deflationary Economy; Strategy to Revive the Japanese Economy (MAR /01)
No.3: Indicators of health of life insurance companies need tightening (OCT /00) Contents Table
No.2: Bad Loan Problems and the Financial Market (MAR /00)Contents Table
No.1: Exchange Rate Movements And Adjustment of Balance Sheet in Japan (OCT /99)