The Japanese Central Banking System Compared with Its European and American Counterparts: A New Institutional Economics Approach

Description

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 2008–2009, 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. Front Matter ....Pages i-xxiv Rationale of Central Banks (Yoshiharu Oritani)....Pages 1-40 Governance Structure of Central Banks (Yoshiharu Oritani)....Pages 41-75 Public Governance of Central Banks (Yoshiharu Oritani)....Pages 77-126 Governance of Monetary Policy (Yoshiharu Oritani)....Pages 127-175 Ownership of Prudential Policy (Yoshiharu Oritani)....Pages 177-228 Role of Central Banks in Financial Crisis Management (Yoshiharu Oritani)....Pages 229-265 Scope and Governance of Central Bank Payment and Settlement Systems (Yoshiharu Oritani)....Pages 267-309 Epilogue (Yoshiharu Oritani)....Pages 311-312 Back Matter ....Pages 313-327