
Foreign Exchange Intervention and Monetary Policy in Japan RePEc Repec Form
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People also ask
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Who makes the policy monetary policy?
The Federal Reserve sets U.S. monetary policy and the New York Fed plays a central role in implementing it. The Fed's economic goals prescribed by Congress are to promote maximum employment, stable prices, and moderate long-term interest rates.
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What is the foreign exchange intervention in Japan?
In Japan, foreign exchange intervention is to be carried out under the authority of the Minister of Finance. As stipulated in the Act on Special Accounts and the Bank of Japan Act, the Bank conducts foreign exchange interventions on behalf of and at the instruction of the minister.
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Who is primarily responsible for monetary policy?
The Federal Reserve (Fed), the nation's central bank, is responsible for monetary policy. This In Focus explains how monetary policy works. Typically, when the Fed wants to stimulate the economy, it makes policy more expansionary by reducing short-term interest rates.
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What is an example of a foreign exchange intervention?
For example, countries that are heavily reliant on exports may find that their currency is too strong for other countries to afford the goods they produce. They may intervene to keep the currency in line with the currencies of the countries which import their goods.
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What is the monetary authority of Japan?
The Bank of Japan, as the central bank of Japan, decides and implements monetary policy with the aim of maintaining price1 stability. Price stability is important because it provides the foundation for the nation's economic activity.
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Who is responsible for monetary policy in Japan?
As the central bank of Japan, the Bank of Japan carries out currency and monetary control to achieve price stability, thereby contributing to the sound development of the national economy, as stipulated in Articles 1 and 2 of the Bank of Japan Act.
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Who is responsible for administering monetary policy?
The Federal Reserve Act of 1913 gave the Federal Reserve responsibility for setting monetary policy. The Federal Reserve controls the three tools of monetary policy--open market operations, the discount rate, and reserve requirements.
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How will contractionary monetary policy in Japan affect the demand and supply of the yen in the foreign exchange market?
The demand for the yen will fall, and the supply of the yen will increase.
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