Haruhiko Kuroda: "Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control" - new monetary policy framework for overcoming low inflation

Speech by Mr Haruhiko Kuroda, Governor of the Bank of Japan, at the Brookings Institution, Washington DC, 8 October 2016.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

It is a great honor to have the opportunity today to speak at the Brookings Institution, a think-tank with a long history and notable achievements.

Since the global financial crisis in 2008, declines in the natural rate of interest and inflation expectations have led to a growing debate about whether monetary policy is becoming less effective. While it is now widely recognized that this is a common challenge for major economies, Japan has faced and addressed such a challenge ahead of other countries. Against this background, it is extremely valuable to share experiences of different countries and to exchange views among academics, market participants, and central bankers during opportunities like this.