San Fran's Yellen on lessons from Japan

"Clear and strong commitments about the future stance of policy" are important when policy rates approach zero and there is fear of deflation, noted Janet Yellen in an Economic Letter reflecting on lessons from Japan's lost decade.

"The Bank of Japan did this by issuing statements that it would maintain its zero interest rate policy until inflation reappeared," she wrote.

The central bank also engaged in quantitative easing from 2001-2006, but it was unclear if that boosted economic activity

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.