2016 Reports

The Current Situation in the Japanese Economy and its Financial Markets – What is the Effect of the Negative Interest Rate?

Kinoshita, Yasushi

In order to understand the effect of negative interest rates on the Japanese economy and its financial system, it is essential to analyze Abenomics – the economic policies of Prime Minister Shinzo Abe’s administration – within the context of the global economy. The author gives an overview of the introduction of the negative interest rate, the current state of the Japanese economy and financial markets, challenges confronting Japan, actions the DBJ has taken, the necessity of reforms, and prospects for growth.