Bank of Japan Keeps Interest Rate Unchanged



The article reports the Bank of Japan’s decision to maintain the existing Interest rates while pushing back the time for achieving 2 per cent Inflation target . The Central bank also postponed the planned expansionary monetary policy stimulus.


Topics covered are Interest rates, Inflation, relationship between Interest rates and Inflation, contractionary monetary policy and its consequences. Explain using the National output diagrams and discuss the combined effect of contractionary monetary policy on Inflation, Economic Growth and unemployment.


Evaluation will include effectiveness of Monetary Policy to tackle Inflation and its further effects on Unemployment, Economic Growth, impact on the consumers, producers and society in short term and long term.