First episode: oil price hikes and the money supply-oriented monetary policy In the first episode, the rapid acceleration of money supply growth amid expansionary fiscal policy after 1971 induced rampant inflation. In spring of 1973, Japan moved to the flexible exchange rate system to mitigate the tradeoff between the free international capital flows and the control of the money supply.
Conclusion The financial system is not standing still, and neither can we. The digital financial ecosystem is evolving rapidly and becoming increasingly connected with the traditional financial system.