This perspective is important in considering macroeconomic policy in general, and, in my opinion, all the more so given the current international discussions of regulatory reforms after the global financial crisis. In this short presentation, I will explain how the Bank of Japan has been actually implementing macroprudential policy to date, from this perspective, and the implications for the policy’s best practices. 1.
In the 1990s, what some call the “lost decade”, when in spite of high earnings from our mineral wealth and steady economic growth, gross fiscal mismanagement, the closure of a major mining project and other external factors, we were deprived of the opportunity to set the stage for progress and growth.