"The New Dimension Monetary Easing" in a Historical Perspective" (in Japanese)

This paper compares the "new dimension monetary easing" by the Bank of Japan under the Abe administration since April 2013 with the "Takahashi Policy" in the 1930s. Korekiyo Takahashi, who was appointed to be the Minister of Finance under the Great Depression, implemented a distinctive set of macro-economic policies including suspension of the gold standard, monetary easing, and fiscal spending based on underwriting of public bonds by the Bank of Japan. Those scholars who promoted the radical monetary easing in recent years, referred to the Takahashi's policy to justify their argument. By comparing the basic macro-economic variables between the 1930s and the 2010s, we found that the impacts of these two policies are substantially different. It is suggested that the difference reflects the difference in the condition of the financial market as well as the long-term momentum of economic growth.