Informality and Monetary Policy in Japan: The Political Economy of Bank Performance

By Adrian Van Rixtel | Go to book overview
Save to active project

5
Informality, monetary authorities
and monetary policy: the pre-1998
reform regime

A son who wins entry to the MOF's elite track at the age of 22 or 23 earns his family as much distinction as if he had won a Nobel Prize MOF men truly are Nobel-caliber: brilliant, creative, tenacious, public-spirited. Many of them would probably win Nobel Prizes if they chose careers that tend to catch the eye of the Royal Swedish Academy of Sciences.

E. Fingleton (1995)


5.1 Introduction

In this chapter, the organisation in general and informal policies in particular of the two major monetary authorities in Japan the Ministry of Finance (MoF) (Ōkurashō) and the Bank of Japan (BoJ) (Nihon Ginkō) until 1998 will be discussed. The year 1998 is chosen because in my view it was a turning point in the post-war development of the Japanese financial system and monetary policy. In this year the major reform programme dubbed the 'Big Bang' started, a new version of the Bank of Japan Law was adopted, bank supervision was removed from the MoF to a new independent organisation (Financial Supervisory Agency), other important reorganisations of the MoF and BoJ were implemented, the issuance of tsūtatsu was restricted and last, but certainly not least, measures were implemented to solve finally the severe banking crisis. In this respect, this chapter serves as a yardstick for the assessment of the post-war informal mode of policy implementation in Japan, which, as I shall assert in subsequent chapters, to a large extent caused the banking problems of the nineties and led to the major reforms that will be discussed in chapter 6. Furthermore, the analysis aims to clarify the institutional framework that forms the basis for further empirical analysis in chapters 7 and 8. More specifically, the relevance and importance of informal instruments, i.e. tsūtatsu or published administrative guidance and unpublished administrative guidance (see chapter 3), for the implementation of Japanese monetary policy will be investigated. Attention will also be paid to the informal

-91-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
Informality and Monetary Policy in Japan: The Political Economy of Bank Performance
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 400

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?