Economics Atlas

How Wealth Is Ordered
Institutions

Bank of Japan

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The Bank of Japan is the central bank of Japan, established in 1882 to issue a unified national currency and stabilize the country's financial system after the Meiji Restoration's currency reforms. It has repeatedly led global monetary-policy innovation from a position of economic difficulty rather than strength, running the world's first sustained modern quantitative easing program from 2001 to 2006, years before the Federal Reserve and European Central Bank adopted comparable tools during the 2008 financial crisis.

Facts
Founding Year
1882 1
Headquarters
Tokyo, Japan 1
Cross-Tradition Connections

Associated With

Quantitative Easing, Concepts

The Bank of Japan ran the first sustained modern quantitative easing program, 2001-2006, predating the Federal Reserve's and European Central Bank's adoption of the tool during the 2008 financial crisis.

Sources
1. Bank of Japan: History
Bank of Japan
Frequently Asked Questions

Did the Federal Reserve invent quantitative easing?

No: the Bank of Japan pioneered sustained quantitative easing in 2001, years before the Fed used it in 2008.

No. The Bank of Japan ran the first sustained modern quantitative easing program from 2001 to 2006, expanding bank reserves well beyond what conventional interest-rate policy required, years before the Federal Reserve and European Central Bank adopted comparable tools during and after the 2008 financial crisis. The Fed's program is better known internationally, but the Bank of Japan pioneered it, and did so from a position of prolonged deflation and near-zero growth rather than acute crisis.

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