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Data response (2)

Read the article After the flood and then consider answers to the questions below. (You can either read the article in the window below or you can follow the previous link to read the article in a separate window).


Question 1

Explain what is meant by tight and loose monetary policy

Question 2

Identify the main features of Japanese monetary policy in recent years and explain the reasons for recent changes.

Question 3

Analyse the impact of these changes in monetary policy on the main Japanese macroeconomic targets.

Question 4

The Bank of Japan defines price stability as "a state where the change in the price index is zero". Examine the advantages and disadvantages of setting a zero target rate.