NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Great Inflation and Central Bank Independence in Japan

Takatoshi Ito

Chapter in NBER book The Great Inflation: The Rebirth of Modern Central Banking (2013), Michael D. Bordo and Athanasios Orphanides, editors (p. 357 - 387)
Conference held September 25-27, 2008
Published in June 2013 by University of Chicago Press
© 2013 by the National Bureau of Economic Research

This chapter analyzes Japan's experience during the Great Inflation in the 1970s, first reviewing the 120-year history of inflation in Japan. It then describes the economic events, political developments, and monetary policy actions that resulted in the Great Inflation of 1972 to 1974. The monetary policy during this period is considered to have been a mistake. The chapter discusses why the Bank of Japan gained monetarist rhetoric and de facto independence after the mistake of 1972 to 1973, and reviews the no-inflation experience during the second oil crisis, 1978 to 1980. It also presents some econometric analysis to substantiate the arguments in the preceding sections.

download in pdf format
   (468 K)

email paper

This paper is available as PDF (468 K) or via email.

This paper was revised on February 18, 2010

Machine-readable bibliographic record - MARC, RIS, BibTeX

This chapter first appeared as NBER working paper w15726, Great Inflation and Central Bank Independence in Japan, Takatoshi Ito
Commentary on this chapter: Comment, Frederic S. Mishkin
Users who downloaded this chapter also downloaded these:
Mishkin Comment on "Great Inflation and Central Bank Independence in Japan"
Ito w15726 Great Inflation and Central Bank Independence in Japan
Ito and Mishkin Two Decades of Japanese Monetary Policy and the Deflation Problem
Beyer, Gaspar, Gerberding, and Issing Opting Out of the Great Inflation: German Monetary Policy after the Breakdown of Bretton Woods
Bordo and Orphanides Introduction to "The Great Inflation"
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us