The relationship between the Federal Reserve and the executive branch was exceptional during the Clinton Administration. Early indications point to a continued excellent relationship with the new Administration. In contrast, the recent relationship between the Bank of Japan and the rest of the Japanese government seems not to have been so good.
This undoubtedly reflects in part the fact that the Bank of Japan and the Ministry of Finance are still working out their respective roles following the Bank gaining greater independence. An interesting question, however, is whether the tensions have affected policy outcomes and macroeconomic performance. It sometimes appears that the result has been a stalemate or the outcome of a noncooperative game.