The Japanese Central Banking System Compared with Its European and American Counterparts

This book uniquely explores the role and governance mechanism of central banks by applying new institutional economics (NIE). Simultaneously, the book tests the analytical viability of NIE when applied to an organization that has both public and private characteristics. Special attention is paid to the Bank of Japan (BOJ) based on the author's 30 years of work experience and participant observation there, touching upon discussion of central bank independence. The book argues that central bank independence cannot be defended solely by law, and a mechanism to eliminate requests from politicians needs to be embedded within the governance structure.

The book also provides a comparative analysis between the BOJ and central banks in Europe and the USA. In reviewing the global financial crisis of 20082009, it suggests possible measures based on behavioral economics and public choice theory. These theory-based analyses provide useful insights when considering matters such as whether a central bank should issue electronic money or the European system of central banks could be established in Asia.

Explores the role and governance mechanism of central banks by applying new institutional economics (NIE) as compared to a non-theoretical description of those aspects of central banking Tests how useful NIE is for studying an institution that has both public and private characteristics, adopting a central banking institution as an example Reveals serious problems that the Bank of Japan faces with politiciansproblems stemming from its governance mechanismbased on the author's 30 years of experience at the Bank Endorsed by Masaaki Shirakawa, former Governor of the Bank of Japan

Contenu
Foreword.- Preface.- Acknowledgements.- 1 Rationale of Central Banks.- 2 Governance Structure of Central Banks.-3 Public Governance of Central Banks.- 4 Governance of Monetary Policy.- 5 Ownership of Prudential Policy.- 6 Role of Central Banks in Financial Crisis Management.- 7 Scope and Governance of Central Bank Payment and Settlement Systems.- 8 Epilogue. <p