Kinyuseisaku: Monetary Policy in Japan (A)

Posted: 21 May 2009

See all articles by Laura Alfaro

Laura Alfaro

Harvard University

Akiko Kanno

Harvard University - Business School (HBS)

Date Written: April 9, 2009


Toshihiko Fukui, Governor of the Bank of Japan, faced a complex situation in the fall of 2007. An economic recovery had allowed the central bank to abandon its zero interest rate policy, which had been in place for years, and raise rates to 0.5%. The Bank of Japan was eager to increase them to more 'normal' levels to exert effective monetary policy. Yet the appropriate timing and approach was a controversial issue, especially as the government did not want a rate hike that could potentially hinder economic growth and increase its already large fiscal debt burden.

Suggested Citation

Alfaro, Laura and Kanno, Akiko, Kinyuseisaku: Monetary Policy in Japan (A) (April 9, 2009). HBS Case No. 708-017, Harvard Business School BGIE Unit Paper No. 1408067, Available at SSRN:

Laura Alfaro (Contact Author)

Harvard University ( email )

Cambridge, MA 02138
United States

Akiko Kanno

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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