The challenges currently facing Japan's economy are of a similar scale as those facing other major economies, but so are Japan's policy responses. Based on the experience of the GFC, the BOJ has used all possible tools at its disposal.
It will need to continue to cooperate closely with the government and other central banks to implement flexible and bold policies in a timely and appropriate manner. 10  Appendix: Theoretical Background Model This appendix presents a two-country model describing the interdependence of monetary policy in the two countries.