From China’s standpoint, “imbalances” and monetary policy flexibility do not provide imminent economic rationale for more flexible exchange rate, given the rate elasticity of the trade and the state...
We are finally emerging from the financial crisis that rocked markets around the world. Inasmuch as Japan was relatively unscathed compared with other developed economies, one would expect other...
In the ongoing debate on financial supervision in the US and Europe, attention has focused on reviewing the role of supervisory bodies. But we must not neglect more fundamental...
Reinhart and Rogoff's 2008 study of financial crises over the past two centuries underlines the frequency of such events. In my two decades as a central banker we dealt...
Japan’s experience with quantitative easing (“QE”) shows that an ultra-low-interest-rate policy leads to dysfunctional money markets. Specifically, it i) reduces transaction volume, ii) compresses credit and liquidity spreads, and...
Finance and information technology have become increasingly inseparable. Advances in IT and its adoption by the financial sector have made the impossible possible and driven major change in the...
Many analysts have argued that prospective increases in short-term interest rates will enhance banks’ loan-to-deposit spreads. But a number of other issues must be taken into account. Depending on...