Japan in the World
Unprecedented Provision of Liquidity and Strategic
Shift for Monetary Policies
Total assets of Japanese/US/Eurozone central banks
Start of 2005=100
1000
900
800
700
600
500
400
300
200
100
0
Bank of Japan
-US Federal Reserve Board (FRB)
-European Central Bank (ECB)
05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 CY
Source: Bank of Japan, FRB, and ECB materials
NOMURA
The impetus for the recovery in global share
prices after the crash in early March 2020 was
major central banks' success in staving off a "fire
sale" chain reaction by resolving investors'
concern over cash on hand through swift
monetary easing and the provision of huge
amounts of liquidity
Furthermore, in August, the US Federal Reserve
Board (FRB) announced a strategy shift for
monetary policy, displaying a commitment to
continued monetary easing to meet inflation
targets, even if inflation temporarily exceeds the
annual target of 2%
The FRB's strategy shift led central banks in
other regions to promote monetary easing as well,
leading to peace of mind that global low interest
rates would be prolonged, and providing force to
boost the stock markets
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