Monetary Policy Timeline Videos
Summary
Freelancer Client is hiring: Monetary Policy Timeline Videos.
Location: Remote
From 1998 to 2018, Japan suffered through two huge recessions. During this same period, the Government of Japan reduced its Interest Payments on its National Debt from 11 Trillion Yen on a National Debt of 192 Trillion Yen in 1992 to 7.4 Trillion Yen on a National Debt of 998 Trillion Yen in 2018. Mof.go.jp/english/budget/budget/fy2020/04.pdf
Requirements:
• Strong design skills
• Experience with presentation software
• Ability to create authoritative and persuasive voice-over content
Skills: Graphic Design, Video Production, Video Editing, Adobe Premiere Pro, Data Visualization, Audio Editing, Content Creation, Voice Over, AI Content Creation
Budget: $250–$750 USD
Source: Freelancer Client via Remote / Online. Apply on the source website.
Original
From 1998 to 2018, Japan suffered through two huge recessions. During this same period, the Government of Japan reduced its Interest Payments on its National Debt from 11 Trillion Yen on a National Debt of 192 Trillion Yen in 1992 to 7.4 Trillion Yen on a National Debt of 998 Trillion Yen in 2018. Mof.go.jp/english/budget/budget/fy2020/04.pdf
During the first recession, the Bank of Japan instituted a Zero Interest Rate Policy on February 12, 1999. The Policy lasted until August 11, 2000.
https://www.boj.or.jp/en/mopo/mpmscheminu/minu1999/g990212.htm
https://www.boj.or.jp/en/mopo/mpmscheminu/minu2000/g000811.htm
During this period, the Bank of Japan began purchases of Japanese Government Bonds at market price, while interest rates were at Zero. Something that would become known as Quantitative Easing. From October 1999 to April 2000. Quantitative Easing is only done when interest rates are at zero. The Bank of Japan could not have done any more Quantitative Easing since interest rates were no longer at zero after August 11, 2000. This accounts for SEVEN months of Quantitative Easing.
https://fred.stlouisfed.org/series/JPNASSETS https://www.federalreserve.gov/monetarypolicy/files/FOMC20081212memo03.pd
On March 9, 2001, the Bank of Japan restarted its Quantitative Easing Policies. In the Bank of Japan statement, the Bank states it is re-starting its Quantitative Easing Policies, which can only refer to the additional seven months from October 1999 to April 2000 as Quantitative Easing. The Bank of Japan instituted a Zero Interest Rate policy that lasted until July 14, 2006. https://www.boj.or.jp/en/mopo/mpmscheminu/minu2001/g010319.htm
The Bank of Japan instituted Quantitative Easing from March 2001 to March 2006. A net total of sixty months. Adding the seven months of Quantitative Easing from October 1999 to April 2000. A total of 67 months of Quantitative Easing from a period of 2499 days of a Zero Interest rate policy from February 12, 1999, to July 14, 2006.
Quantitative Easing and Bank Lending: Evidence from Japan (federalreserve.gov)
On December 16, 2008, the Federal Reserve Bank, in response to the Financial meltdown of 2008, instituted a Zero Interest Rate Policy, which lasted until December 16, 2015. Accounting for a Zero Interest Rate Policy that lasted for 2554 days. Only 55 days longer than the Bank of Japan’s Zero Interest Rate Policy.
Federal Reserve Board - FOMC statement
During this time, the Federal Reserve Bank, by its own website, states that it committed 66 months of Quantitative Easing. On October 5, 2010, the Bank of Japan instituted Comprehensive Monetary Easing. This included purchases of Japanese Government Bonds at market price while Interest Rates were at Zero. Or, what financial jargon calls Quantitative Easing. This occurred 1544 days after having first raised interest rates on July 14, 2006.
Comprehensive Monetary Easing (Announced at 1:38 p.m.) (boj.or.jp)
On March 15, 2020, the Federal Reserve first increased interest rates for the first time in years, the Federal Reserve re-instituted its Zero-Interest Rate Policy, and began its Quantitative Easing program, just like Japan. 1551 DAYS AFTER HAVING FIRST RAISED INTEREST RATES ON DECEMBER 16, 2015. Washingtonpost.com/business/2020/03/15/federal-reserve-slash-interest-rates-zero-part-wide-ranging-emerg Federal Reserve cuts rates to zero to support the economy during the coronavirus pandemic | CNN Business
When the Federal Reserve allowed interest rates to rise on September 22, 2021. It was the first time in 556 days since the Federal Reserve re-instituted its Zero Interest Rate Policy on March 15, 2020, in response to the COVID-19 pandemic. The Bank of Japan instituted its first Zero Interest Rate Policy on February 12, 1999, which lasted 546 days, until the Bank of Japan increased its Uncollateralized Overnight Call Rate on August 11, 2000. Outside agitators do not lend themselves to this type of Bond market anomaly. A pandemic started by a genetically mutated virus allowed the central bank to restart Quantitative Easing. The difference between the Japanese and American Zero Interest Rate Policy is only a week.
Federal Reserve: Fed signals it will taper bond purchases this year (usatoday.com)
In the entitled ‘Monetary Policies Alternatives at Zero-Bound: An Empirical Assessment’, the authors state: Our analysis of the recent experience in Japan focuses on three non-standard policies recently employed by the Bank of Japan: (1) The first policy, was one of transparency, the Bank stated in its own literature and press releases to the markets and the general public that the new zero-interest-rate policy would be around for a long time and that its repeal would be attached to an inflation rate. (2) the zero-interest rate policy, under which the BOJ is committed to keeping the call rate at zero until deflationary pressures have been eliminated; and (3) the BOJ Quantitative Easing Policy, which consists of providing bank reserves at levels much higher than needed to maintain a policy rate of zero. These three statements state that the goal is the zero-interest rate policy itself. Not the improvement of the economy.
The paper by Bernanke, Reinhart, and Sacks also said that the central bank should commit to a campaign to inform the public and private investors that the Zero-Interest Rate Policy would be around for a long time and that they should attach its repeal to the improvements in the economy, as well as appreciation in certain asset classes. It was this communication of the expectations of future interest rates that was one of the three pillars of this policy.
Another piece of the program was designed to change the composition of the Central Bank’s balance sheet. All three of the authors wanted central banks to expand the central bank’s balance sheets; not only did the authors want the central banks to buy government bonds through its ‘Open Market’ system. They wanted the central banks to hold most of the bonds; they also wanted the central bank to buy and sell these bonds through the Federal Reserve Bank’s ‘Open Market’ system. They also wanted the central bank to give banks money in their excess reserve accounts that are kept at the Federal Reserve Bank to purchase Government bonds at inflated prices. Which was much like the same advice Dr. Bernanke gave the Japanese only two years earlier.
The three authors of Monetary Policy Alternatives at the Zero Lower Bound Rate had an addition to these steps; they also wanted the central banks to change the composition of their balance sheets, meaning buy long-term government bonds and sell short-term government bonds to replace the ones they just bought. Which is similar to the Federal Reserve's ‘twist’ program or QEIII.
www.brookings.edu/wp-content/uploads/2004/06/2004bbpeabernanke.pdf
In its March 19, 2001, announcement, the Bank of Japan cut its policy rate to zero. In the Bank of Japan Press Release, the bank states the following: 1) To change the Bank of Japan’s Quantitative Easing operating target to the outstanding current account balances held by financial institutions at the Bank of Japan. However, now, in March of 2001, the Bank of Japan was going to change the target interest rate used in the Bank of Japan’s Quantitative Easing program from the Uncollateralized Overnight Call Rate to the Current Account Balance. 2) To maintain the policy until the core consumer price index (ex., food prices) stops falling on a year-on-year basis. 3) To increase purchases of long-term government bonds and some other assets, to achieve the target increases in Current Account Balances.
The announcement stipulates that there was a change to the Quantitative Easing Policy, and that change was from the Uncollateralized Overnight Call Rate to the Outstanding Current Account Balance held by financial institutions at the Bank of Japan. If your Quantitative Easing Policy started in March of 2001, then why did the announcement come with a directive to change the target rate from the Overnight Call Rate to the Outstanding Current Account Balance. This points to the seven months between October 1999 and April 2000 as the beginning of the Bank of Japan’s first Quantitative Easing Policy.
On March 19, 2001, the Bank of Japan restarted its Quantitative Easing Policy. The Bank of Japan had restarted purchasing 400 billion yen worth of Japanese Government Bonds every month. In 2001, the Bank of Japan, which had been purchasing 400 billion yen worth of Japanese Government Bonds, increased its monthly purchases to 600 billion yen a month, eventually increasing it to 800 billion yen a month, and in 2002, the Bank of Japan increased its monthly purchases of Japan Government Bonds to 1.2 trillion yen a month.
The Bank of Japan increased the Current Account Balance to five trillion yen, one trillion yen higher than the required four trillion yen. The Bank of Japan initially increased the account balance by approximately one trillion yen to the target of five trillion yen. As the new target exceeded the reserve requirements, the change reduced the call rate from 0.15% to 0.0%. Since there was more than required to cover all transactions, the interest rate is zero.
Videos should include:
- Charts and graphs
- Historical photos
- Infographics
- Time shots of the era of open immigration and the pandemic
Ideal skills and experience:
- Strong design skills
- Experience with presentation software
- Ability to create authoritative and persuasive voice-over content
Location & Details
Apply on source →About this listing
This remote opportunity was imported from Freelancer and is shown here for discovery. To apply, follow the link to the original posting.