Adjusted Monetary Bases, Japan and USA, 1992-2009
Jan. 8, 2009
The Bank of Japan controls the monetary base. Here is the record of its policies in the aftermath of the collapse of the Japanese stock market in 1990 and 1991.
There was increasing monetary base expansion in the 1990s.
There has been no sustained monetary inflation since 2004.
Compare this with the USA's monetary base. Note: the percentages are set differently: 20%, 40%, 60% for the USA. Japan: 10%, 20%, 30%.
As you can see, in the 1990s, the two central banks had similar policies, but reversed. The Bank of Japan expanded the AMB to 10% in the second half. The Federal Reserve started at 10% and lowered this in the second half.
In 2001-2, the Bank of Japan sharply increased the base. It drastically shrank it in 2006. Ever since mid-2007, it has remained flat. In late 2009, it increased the rate to around 8%.
In short, there is nothing startling in either chart until late 2008 in the USA.