Central Banks' Challenges in Advanced Economies Next,I would like to talk about the common features observed regarding the monetary policy framework adopted by major central banks in advanced economies, as well as their challenges.
Regarding the monetary policy frameworks of the region, I had an opportunity to speak in Singapore in July 2014.1 Since then, economic and financial conditions have changed dramatically globally as well as in the region.
New Framework for the Conduct of Monetary Policy As the Japanese economy is heading toward normalization, we have altered the framework of monetary policy to support movement in that direction.
However, to maintain low and stable inflation amid mounting fiscal pressures and the risk of exchange rate shocks,policymakers need to strengthen monetary policy frameworks and central bank capacity and replace price controls with more efficient policies..
I will then focus on common features observed under the monetary policy framework in advanced economies(namely,the United States, the euro area, Japan, and the United Kingdom), as well as major challenges faced by the central banks in these economies.
In the keynote speech, Professor Carl Walsh of the University of California, Santa Cruz, the new Honorary Adviser to IMES,will share his views on monetary policy frameworks under a low inflation and interest rate environment from an academic perspective.
現在の金融政策の枠組み。
The current macroeconomic policy framework.
新たな金融政策の枠組みの信頼性を維持することが成功のためには肝要となる。
Maintaining credibility in the new monetary policy framework will be crucial for its success.
現在の金融政策の枠組みは主に2つの要素から成り立っています(図表5)1。
This current framework for monetary policy consists of two major components(Chart 5).1.
この評価を実施する際、我々は、各国の為替・金融政策の枠組みを適切に考慮する。
In carrying out this assessment,we will take due account of the exchange rate and monetary policy frameworks of members.
Experience of high inflation up to the 1980s, for example,encouraged the development of monetary policy frameworks focusing on prices, such as"inflation targeting" regimes.
One year and two months have passed sincethe Bank adopted a new monetary policy framework which aims at'quantity'-- the outstanding balance of current deposit accounts(reserves) held at the Bank-- as its main operating target.
While many economies are prepared for this, our primary response is to further strengthen and refine our domestic macroeconomic,structural and financial policy frameworks.
During the late 19th century, most economies were on the gold standard,the first monetary policy framework where currency was valued at a fixed amount of gold.
This new framework of monetary policy includes the three monetary policy options mentioned in section II above, and it is quite similar to the previous zero interest rate policy..
At the Monetary Policy Meeting held in September, the Bank conducted a"Comprehensive Assessment" of the effects of these policy measures and, based on this assessment,introduced a new monetary policy framework.
This monetary policy framework based on short-term interest rate control has become known as conventional monetary policy, even though only twenty years have passed since its establishment.
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