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

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