Japan's Battle with Deflation: How Quantitative Easing Changed the Economy

Meanwhile back in Japan the government was dealing with its own economic challenges Even after being the world's first country to introduce a zero-interest rate policy in April 1999 Japan was still facing a new monster Deflation is when the overall level of prices in an economy decreases incentivizing people not to spend their money by delaying their purchases because they expect prices to fall further In response to this in 2001 the Bank of Japan decided to take another bold step to fight this deflation It became the first country ever to introduce a policy known as quantitative easing or QE for short.This practice has since been adopted by other central banks worldwide particularly during the 2008 financial crisis and more recently during the pandemic In simple terms QE is when a central bank like the Bank of Japan creates new money and uses it to buy government bonds or a title where the government promises to pay back the borrowed money at a certain time and with a certain interest rate that are both fixed during the creation of the bond. Subscribe to support this channel and watch more videos like this ................................................................................................................................. How Japanese Housewives Outsmarted Global Finance (Documentary) The Dark Side of Japan: The Lost Generation Which Country do Japanese Hate? Tokyo Walk, Adult Liven up your Night in Kabukicho｜red light area district Japan 東京 新宿 歌舞伎町 4k