Bank Of Japan

1 History LIKE MOST MODERN JAPANESE INSTITUTIONS, THE BANK OF JAPAN WAS FOUNDED AFTER THE MEIJI RESTORATION. PRIOR TO THE RESTORATION, JAPAN'S FEUDAL FIFS ALL ISSUED THEIR OWN MONEY, HANSATSU, IN AN ARRAY OF INCOMPATIBLE DENOMINA- TIONS, BUT THE NEW CURRENCY ACT OF MEIJI 4 (1871) DID AWAY WITH THESE AND ESTABLISHED THE YEN AS THE NEW DEC- IMAL CURRENCY, WHICH HAD PARITY WITH THE MEXICAN SIL- ver dollar. *[3] The former han (? efs) became prefectures AND THEIR MINTS BECAME PRIVATE CHARTERED BANKS WHICH, HOWEVER, INITIALLY RETAINED THE RIGHT TO PRINT MONEY. FOR A TIME BOTH THE CENTRAL GOVERNMENT AND THESE SO-CALLED “national”banks issued money.

A period of unantici- PATED CONSEQUENCES WAS ENDED WHEN THE BANK OF JAPAN WAS FOUNDED IN MEIJI 15 (1882) AFTER A BELGIAN MODEL. IT HAS SINCE BEEN PARTLY PRIVATELY OWNED (ITS STOCK IS TRADED over the counter, hence the stock number). *[4] A number OF MODIFIATIONS BASED ON OTHER NATIONAL BANKS WERE EN- COMPASSED WITHIN THE REGULATIONS UNDER WHICH THE BANK was founded. *[5] The institution was given a monopoly ON CONTROLLING THE MONEY SUPPLY IN 1884, BUT IT WOULD BE ANOTHER 20 YEARS BEFORE THE PREVIOUSLY ISSUED NOTES WERE retired. *[6] FOLLOWING THE PASSAGE OF THE CONVERTIBLE BANK NOTE REG-ULATIONS (MAY 1884), THE BANK OF JAPAN ISSUED ITS FIRT BANKNOTES IN 1885 (MEIJI 18).

DESPITE SOME SMALL GLITCHES ?for example, it turned out that the konnyaku powder MIXED IN THE PAPER TO PREVENT COUNTERFEITING MADE THE bills a delicacy for rats? the run was largely successful. In 1897 Japan joined the gold standard*[7] and in 1899 the former “national”banknotes were formally phased OUT. SINCE ITS MEIJI ERA BEGINNINGS, THE BANK OF JAPAN HAS OP- ERATED CONTINUOUSLY FROM MAIN OFCES IN TOKYO AND OS- AKA. 1.

1 Reorganization The BOJ was reorganized in 1942*[1] under the Bank of Japan Act of 1942 (??????? 17 ???The Osaka branch of the Bank of Japan is seen in the top right of this 1930 aerial photograph. The wide street in front of the bank is part of the Mido-Suji. ?67 ? ). There was a brief post-war period during the OCCUPATION OF JAPAN WHEN THE BANK'S FUNCTIONS WERE SUS- PENDED, AND MILITARY CURRENCY WAS ISSUED. IN 1949, THE bank was again restructured. *[1] IN THE 1970S, THE BANK'S OPERATING ENVIRONMENT EVOLVED ALONG WITH THE TRANSITION FROM A FIED FOREIGN CURRENCY EX- CHANGE RATE AND A RATHER CLOSED ECONOMY TO A LARGE OPEN economy with a variable exchange rate. *[8]

DURING THE ENTIRE POST-WAR ERA, UNTIL AT LEAST 1991, THE BANK OF JAPAN'S MONETARY POLICY HAS PRIMARILY BEEN CON- ducted via its 'window guidance' (? ? ? ?)credit CONTROLS (WHICH ARE THE MODEL FOR THE CHINESE CENTRAL BANK'S PRIMARY TOOL OF MONETARY POLICY IMPLEMENTA- TION), WHEREBY THE CENTRAL BANK WOULD IMPOSE BANK CREDIT GROWTH QUOTAS ON THE COMMERCIAL BANKS. THE TOOL WAS IN- STRUMENTAL IN THE CREATION OF THE 'BUBBLE ECONOMY' OF THE 1980S. IT WAS IMPLEMENTED BY THE BANK OF JAPAN'S THEN 'Business Department' (??? ), which was headed dur- ING THE 'BUBBLE YEARS' FROM 1986 TO 1989 BY TOSHIHIKO FUKUI (WHO BECAME DEPUTY GOVERNOR IN THE 1990S AND governor in 2003). *[9]

A MAJOR 1997 REVISION OF THE BANK OF JAPAN ACT (JP) WAS designed to give it greater independence;*[10] however, THE BANK OF JAPAN HAS BEEN CRITICIZED FOR ALREADY POSSESS- ING EXCESSIVE INDEPENDENCE AND LACKING IN ACCOUNTABILITY before this law was promulgated. *[11] A certain degree OF DEPENDENCE MIGHT BE SAID TO BE ENSHRINED IN THE NEW 1 24 GOVERNORS LAW, ARTICLE 4 OF WHICH STATES: IN RECOGNITION OF THE FACT THAT CURRENCY AND MONETARY CONTROL IS A COMPONENT OF OVERALL ECO- NOMIC POLICY, THE BANK OF JAPAN SHALL ALWAYS MAINTAIN CLOSE CONTACT WITH THE GOVERNMENT AND EXCHANGE VIEWS SUFFICIENY, SO THAT ITS CURRENCY.

AND MONETARY CONTROL AND THE BASIC STANCE OF THE GOVERNMENT'S ECONOMIC POLICY SHALL BE MUTUALLY HARMONIOUS. HOWEVER, SINCE THE INTRODUCTION OF THE NEW LAW, THE BANK OF JAPAN HAS PERSISTENTLY REBUFED GOVERNMENT REQUESTS TO stimulate the economy. *[12] FOLLOWING THE ELECTION OF PRIME MINISTER SHINZO ABE, THE BANK OF JAPAN HAS, WITH ABE'S URGING, TAKEN PROAC- TIVE STEPS TO CURB DEFLATON IN JAPAN. ON OCTOBER 30, 2012, THE BANK OF JAPAN ANNOUNCED THAT IT HAS UNDER- TAKEN FURTHER MONETARY-EASING ACTION FOR THE SECOND TIME in a month. *[13] Under the leadership of new Governor HARUHIKO KURODA, THE BANK OF JAPAN RELEASED A STATEMENT.

ON APRIL 5, 2013 ANNOUNCING THAT IT WOULD BE PURCHAS- ING SECURITIES AND BONDS AT A RATE OF 60-70 TRILLION YEN A YEAR IN AN ATTEMPT TO DOUBLE JAPAN'S MONEY SUPPLY IN TWO years. *[14] 2 Mission The place of the foundation of the Bank of Japan ACCORDING TO ITS CHARTER, THE MISSIONS OF THE BANK OF JAPAN ARE •ISSUANCE AND MANAGEMENT OF BANKNOTES •IMPLEMENTATION OF MONETARY POLICY •PROVIDING SETTLEMENT SERVICES AND ENSURING THE STA- BILITY OF THE FINANIAL SYSTEM •TREASURY AND GOVERNMENT SECURITIES-RELATED OPERA- TIONS •INTERNATIONAL ACTIVITIES •COMPILATION OF DATA, ECONOMIC ANALYSES AND RE- SEARCH ACTIVITIES 3 Location.

The Bank of Japan Osaka Branch THE BANK OF JAPAN IS HEADQUARTERED IN NIHONBASHI, TOKYO, ON THE SITE OF A FORMER GOLD MINT (THE KINZA) AND, NOT COINCIDENTALLY, NEAR THE FAMOUS GINZA DISTRICT, WHOSE name means “silver mint”. The Neo-baroque Bank of JAPAN BUILDING IN TOKYO WAS DESIGNED BY TATSUNO KINGO IN 1896. THE OSAKA BRANCH IN NAKANOSHIMA IS SOMETIMES CON- SIDERED AS THE STRUCTURE WHICH EFECTIVELY SYMBOLIZES THE BANK AS AN INSTITUTION. 4 Governors The chief of the bank (?? , sosai) has considerable in- FLUECE ON THE ECONOMIC POLICY OF THE JAPANESE GOVERN- MENT.

JAPANESE LAWMAKERS ENDORSED THE ACTING BANK OF JAPAN CHIEF AS ITS GOVERNOR HARUHIKO KURODA. HE IS SEEN to adopt Re? ation policy as part of Abenomics. *[15] 4. 1 List of governors 4. 2 Monetary Policy Board AS OF OCTOBER 2014, THE BOARD RESPONSIBLE FOR SETTING MONETARY POLICY CONSISTED OF THE FOLLOWING 9 MEMBERS: 1. HARUHIKO KURODA, GOVERNOR OF THE BOJ 2. KIKUO IWATA, DEPUTY GOVERNOR OF THE BOJ 3. HIROSHI NAKASO, DEPUTY GOVERNOR OF THE BOJ 4. RYUZO MIYAO 5. YOSHIHISA MORIMOTO 3 6. SAYURI SHIRAI 7. KOJI ISHIDA 8. TAKEHIRO SATO 9. TAKAHIDE KIUCHI *[17]]] 5 See also The Bank of Japan Otaru Museum (ja) in Otaru, Hokkaido •BANK OF ENGLAND.. 4.

•ECONOMY OF JAPAN •EUROPEAN CENTRAL BANK •FEDERAL RESERVE •JAPANESE YEN 6 Notes [1] NUSSBAUM, LOUIS FREDERIC. (2005). “NIHON GINKO" IN Japan encyclopedia, p. 708. , p. 708, at Google Books [2] "GUIDE MAP TO THE BANK OF JAPAN TOKYO HEAD OFFI. ” Bank of Japan. Retrieved on December 22, 2009. [3] NUSSBAUM, “BANKS”AT P. 69. , P. 69, AT GOOGLE BOOKS [4] VANDE WALLE, WILLY ET AL. “INSTITUTIONS AND IDEOLOGIES: the modernization of monetary, legal and law enforcement 'regimes' in Japan in the early Meiji-period (1868-1889)" (abstract). FRIS/Katholieke Universiteit Leuven, 2007; retrieved 2012-10-17.

[5] Longford, Joseph Henry. (1912). Japan of the Japanese, p. 289. [6] Cargill, Thomas et al. (1997). The political economy of Japanese monetary policy, p. 10. [7] NUSSBAUM, “BANKS”AT P. 70. , P. 70, AT GOOGLE BOOKS [8] Cargill, p. 197. [9] WERNER, RICHARD (2002).? MONETARY POLICY IMPLEMENTA- TION IN JAPAN: WHAT THEY SAY VS. WHAT THEY DO? , ASIAN Economic Journal, vol. 16 no. 2, Oxford: Blackwell, pp. 111-151; Werner, Richard (2001). Princes of the Yen, Armonk: M. E. Sharpe [10] Cargill, p. 19. [11] HORIUCHI, AKIYOSHI (1993),“JAPAN”IN CHAPTER 3,“MONE- TARY POLICIES”IN HARUHIRO FUKUI, PETER H.

MERKL, HUBRTUS Mueller-Groeling and Akio Watanabe (eds. ), The Politics of Economic Change in Postwar Japan and WWest Ger- many, vol. 1, Macroeconomic Conditions and Policy Re- sponses, London: Macmillan. Werner, Richard (2005), New Paradigm in Macroeconomics, London: Macmillan. [12] See rebu? ed requests by the government representatives at BOJ policy board meetings: e. g. or refusals to increase bond purchases: Bloomberg News [13] “BANK OF JAPAN EXPANDS ASSET-PURCHASE PROGRAM. ”. THE Wall Street Journal. [14] RILEY, CHARLES (APRIL 4, 2013). “BANK OF JAPAN TAKES FGHT TO DEFLATIN”. CNN.

[15] “JAPAN: THE GREAT REFLATON PLAY OF 2013”. TheStreet. com. Retrieved 2013-03-21. [16] Masaoka, Naoichi. (1914). Japan to America, p. 127. [17] https://www. boj. or. jp/en/about/organization/ policyboard/index. htm/ 7 References •CARGILL, THOMAS F. , MICHAEL M. HUTCHISON AND TAKATOSHI ITO. (1997). THE POLITICAL ECONOMY OF JAPANESE MONETARY POLICY. CAMBRIDGE: MIT PRESS. 10-ISBN 0262032473/13-ISBN 9780262032476; OCLC 502984085 •LONGFORD, JOSEPH HENRY. (1912). JAPAN OF THE JAPANESE. NEW YORK: C. SCRIBNER'S SONS. OCLC 2971290 •MASAOKA, NAOICHI. (1914). JAPAN TO AMERICA: A SYMPOSIUM OF PAPERS BY POLITICAL LEADERS AND REP-RESENTATIVE CITIZENS OF JAPAN ON CONDITIONS IN JAPAN AND ON THE RELATIONS BETWEEN JAPAN AND THE UNITED STATES. NEW YORK:

G. P. PUTNAM'S SONS (JAPAN SOCI- ETY). OCLC 256220 •NUSSBAUM, LOUIS FREDERIC AND KATHE ROTH. (2005). JAPAN ENCYCLOPEDIA. CAMBRIDGE: HARVARD UNIVER- SITY PRESS. 10-ISBN 0-674-01753-6; 13-ISBN 978- 0-674-01753-5;OCLC 48943301 •Vande Walle, Willy et al. “Institutions and ideolo- GIES: THE MODERNIZATION OF MONETARY, LEGAL AND LAW ENFORCEMENT 'REGIMES' IN JAPAN IN THE EARLY MEIJI- PERIOD (1868-1889)" (ABSTRACT). FRIS/KATHOLIEKE UNIVERSITEIT LEUVEN, 2007. 48 EXTERNAL LINKS •WERNER, RICHARD A.

(2005). NEW PARADIGM IN MACROECONOMICS: SOLVING THE RIDDLE OF JAPANESE MACROECONOMIC PERFORMANCE. NEW YORK: PAL- GRAVE MACMILLAN. 10-ISBN 1403920737/13-ISBN 9781403920737; 10-ISBN 1403920745/13-ISBN 9781403920744;OCLC 56413058 •_____________. (2003). PRINCES OF THE YEN: JAPAN'S CENTRAL BANKERS AND THE TRANSFORMATION OF THE ECONOMY. ARMONK, NEW YORK: M. E. SHARPE. 10-ISBN 0-7656-1048-5; 13-ISBN 978-0-7656- 1048-5;OCLC 471605161 8 External links •OFFIAL WEBSITE (ENGLISH) •BUILDING A NATIONAL CURRENCY (1868-99) •JAPAN AND WORLD INTEREST RATES, INTEREST RATES DATA AND CHART DAILY UPDATED BY FOREXMOTION.

5 9 Text and image sources, contributors, and licenses 9. 1 Text •Bank of Japan Source: http://en. wikipedia. org/wiki/Bank%20of%20Japan? oldid=643098871 Contributors: Youssefsan, Christopher Ma- han, Enchanter, Olivier, Stewacide, Mic, TakuyaMurata, Jpatokal, Duckie, WhisperToMe, Jusjih, Chris 73, Sekicho, Superm401, Andycjp, Kusunose, LERK, Fg2, DMG413, Kate, Ultratomio, Zscout370, Feitclub, Pearle, Geomr, Historian, Chochopk, Tim! , Koavf, Leslie Ma- teus, YurikBot, Gardar Rurak, Gaius Cornelius, Sandstein, DocendoDiscimus, Sardanaphalus, SmackBot, Enlil Ninlil, Edgar181, Ohnoits-jamie, Chris the speller, DHN-bot, Smallbones, OrphanBot, Kanabekobaton, Muzi, Vina-iwbot, Lambiam, Kuru, Butko, Tan90deg, Stud- erby, DumbBOT.

Thijs! bot, WinBot, Krtek2125, Dsp13, Gert7, Magioladitis, Gr1st, DKB, Krandurus, Binh Giang, Pauly04, Emeraude, McSly, Brahmastra, Enivid, Gracz54, Zappuddu, VolkovBot, TXiKiBoT, Tokyo Watcher, Anna Lincoln, The Random Editor, Enkyo2, Aspects, Lightmouse, Spevw, Alexbot, Minji1997, Addbot, Fryed-peach, Luckas-bot, Yobot, Legobot II, Shinkansen Fan, AnomieBOT, Ciphers, Dinesh smita, Champan250, TerraHikaru, Rawjapan, Roddk3, Lotje, Tbhotch, RjwilmsiBot, EmausBot, Myyuri, ZeroBot, Gray eyes, ChuispastonBot.

ClueBot NG, Akuindo, Eranglo, Helpful Pixie Bot, Maculosae tegmine lyncis, Atakuzier, Fiesta6, Year- inworth, Ansei, Rapter9800, Poveglia and Anonymous: 45 9. 2 Images •File:130823_Bank_of_Japan_Otaru_Museum02s4. jpg Source: http://upload. wikimedia. org/wikipedia/commons/8/86/130823_ Bank_of_Japan_Otaru_Museum02s4. jpg License: CC BY 2. 5 Contributors: Own work Original artist: 663highland •File:Ambox_current_red. svg Source: http://upload. wikimedia. org/wikipedia/commons/9/98/Ambox_current_red. svg License: CC0 Contributors: self-made, inspired by Gnome globe current event.

svg, using Information icon3. svg and Earth clip art. svg Original artist: Vipersnake151,penubag,Tkgd2007 (clock) •File:Commons-logo. svg Source: http://upload. wikimedia. org/wikipedia/en/4/4a/Commons-logo. svg License: ? Contributors: ? Original artist: ? •File:GoEnDamaScan. jpg Source: http://upload. wikimedia. org/wikipedia/commons/3/37/GoEnDamaScan. jpg License: Public domain Contributors: Scanned and published by Fg2 Original artist: Scanned by Fg2 •File:Keicho-koban2. jpg Source: http://upload. wikimedia. org/wikipedia/commons/4/4d/Keicho-koban2. jpg License: CC BY-SA 3. 0 Contributors: Own work Original artist: As6673.

•File:Nakanoshima_1930. jpg Source: http://upload. wikimedia. org/wikipedia/commons/c/c8/Nakanoshima_1930. jpg License: Public domain Contributors: NYPL Picture Collection -- Japan Overseas Travel Magazine (Nippon Yusen Kaisha)Original artist: Unknown •File:Nippon-Bank_at_Osaka. JPG Source: http://upload. wikimedia. org/wikipedia/commons/0/06/Nippon-Bank_at_Osaka. JPG Li- cense: CC-BY-SA-3. 0 Contributors: ? Original artist: ? •File:Symbol_list_class. svg Source: http://upload. wikimedia. org/wikipedia/en/d/db/Symbol_list_class. svg License: Public domain Con- tributors: ? Original artist: ?

•File:The_place_of_the_foundation_of_the_Bank_of_Japan. jpg Source: http://upload. wikimedia. org/wikipedia/commons/0/03/The_ place_of_the_foundation_of_the_Bank_of_Japan. jpg License: CC-BY-SA-3. 0 Contributors: Transferred from en. wikipedia; transfer was stated to be made by User:Maniago. Original artist: Original uploader was Tokyo Watcher at en. wikipedia •File:Wikisource-logo. svg Source: http://upload. wikimedia. org/wikipedia/commons/4/4c/Wikisource-logo. svg License: CC BY-SA 3. 0 Contributors: Rei-artur Original artist: Nicholas Moreau 9. 3 Content license •Creative Commons Attribution-Share Alike 3. 0.