From this perspective, both the Federal Reserve and the Bank of Japan conducted monetary easing after the global financial crisis, thereby reducing short-term nominal interest rates to almost 0 percent (Chart 12).
However, developments in real interest rates, which are a determinant of monetary policy effects, show that while short-term real interest rates in the United States declined significantly after the global financial crisis and remained in negative territory thereafter, those in Japan actually increased and stayed in positive territory.