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.
Although the Bank’s monetary policy measures were often criticized – especially abroad – as being “too little, too late,” the Bank did in fact adopt a variety of unconventional monetary policy measures from the late 1990s onward (Chart 3).