Blanchard, Olivier, Eugenio Cerutti, and Lawrence Summers (2015). “Inflation and Activity—Two Explorations and their Monetary Policy Implications,” IMF Working Paper WP/5/230. Washington: International Monetary Fund, November, https://www.imf.org/external/pubs/ft/wp/2015/wp15230.pdf. Board of Governors of the Federal Reserve System (2018). Monetary Policy Report. Washington: Board of Governors, July, https://www.federalreserve.gov/monetarypolicy/2018-07-mpr-summary.htm. ——— (2019). “Minutes of the Federal Open Market Committee, July 30–31, 2019,” press release, August 21, https://www.federalreserve.gov/newsevents/pressreleases/monetary20190821a.htm.
II. The evolution of monetary policy: What is “Unconventional Monetary Policy”? Given the insidious effects of such deflation, you may be wondering how the Bank of Japan responded. Naturally, the Bank did not merely stand by.