The Central Bank
A Central Banker's 39 Years at the Bank of Japan
Looking back over the 39 years he spent as a central banker after joining the Bank of Japan in 1972; the author discusses the significance and role of the central bank as well as the Bank of Japan.
The five years (2008-2013) that the author served as Governor of the Bank of Japan were marked by many significant events, both in Japan and worldwide.
Globally, the global financial crisis triggered by the Lehman collapse occurred immediately after he assumed the presidency, followed by the European debt crisis.
Domestically, the Liberal Democratic Party (LDP) was replaced by the Democratic Party of Japan (DPJ), but within a short time, the LDP was back in power. In the meantime, the Great East Japan Earthquake and the debate on raising the consumption tax rate took place. It could be called "five years of turbulence."
In this book, the author describes how he thought and what he emphasized in those situations and theoretical analysis of the issues that formed the basis for his decisions.
This book is divided into three parts: Part I covers the period after he joined the Bank of Japan and before he became its Governor, which formed the backbone of his career as a central banker.
He describes how he felt about the bubble economy and its collapse, the revision of the Bank of Japan Act, and other issues at that time from a position far from the core of policymaking.
And he also explains how he analyzes them today.
Part 2 deals with his time as Governor. Divided into chapters on economic and financial events, it looks back at the decisions made and the judgments behind them and discusses the real issues and the author's own thoughts.
Part 3, based on the analysis in Parts 1 and 2, examines several aspects of a desirable currency management system, with a focus on the central bank. While Parts 1 and 2 follow the author's 39 years at the Bank of Japan, Part 3 discusses the mission of central banks from a more global perspective.
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Overview
Table of Contents
Part 1: The Formative Years of My Career at the Bank of Japan
Chapter 1: The Start of My Career at the Bank of Japan
Chapter 2: The Bubble Economy
Chapter 3: Collapse of the Bubble Economy and the Financial Crisis
Chapter 4: Revision of the Bank of Japan Act
Chapter 5: Zero-interest-rate Policy and Quantitative Easing Policy
Chapter 6: The Illusion of "Great Stability"
Part 2: The Period of the Governor
Chapter 7: Appointment as Governor of the Bank of Japan
Chapter 8: The Lehman Collapse
Chapter 9: The Rise of the Deflation Debate
Chapter 10: The Real Challenge for the Japanese Economy
Chapter 11: The European Debt Crisis
Chapter 12: "Comprehensive Monetary Easing"
Chapter 13: The Great East Japan Earthquake
Chapter 14: "Sextuple Whammy" and "Currency Wars"
Chapter 15: Financial Sustainability
Chapter 16: Toward Stability of the Financial System
Chapter 17: Joint Statement by the Government and the Bank of Japan
Part 3: The Mission of Central Banks
Chapter 18: The Role of Central Banks
Chapter 19: Non-Traditional Monetary Policy
Chapter 20: International Monetary System
Chapter 21: "The Lost Twenty Years" and "The Lessons of Japan"
Chapter 22: Independence and Accountability
Chapter 23: A Central Bank as an Organization
Final Chapter: Endless Challenges
Author Profile
Distinguished Professor, School of International Political Economy, Aoyama Gakuin University
Masaaki Shirakawa was born in 1949, graduated from the University of Tokyo in 1972 with a degree in economics, and joined the Bank of Japan. From 1975 to 1977, he left the Bank of Japan to study economics at the University of Chicago, where he earned a master's degree in economics. After serving as Director of the Credit Institutions Division of the Credit Institutions Bureau, Director of the Planning Division of the Planning Bureau, Manager of the Oita Branch, and Deputy Director, he served as a member of the Board of Directors of the Bank of Japan from 2002 to 2006. He served as Deputy Governor of the Bank of Japan in March 2008 and as the 30th Governor of the Bank of Japan from April 2008 to March 2013. He was Deputy Chairman of the Board of Governors of the Bank for International Settlements (BIS) from 2011 to 2013. He was specially appointed Professor of International Political Economy at Aoyama Gakuin University in September 2013.
