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compare and contrast central bank of japan and fed

compare and contrast central bank of japan and fed

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Expert Solution

The central bank of Japan and FED :

The Fed was established in 1914, The bank of Japan in 1882. Both of these institutions work towards transparency, independence both of these institutions operate in an environment where both economy and finances are in harmony.

Now the differences lies in the fact that Fed does not quantify its goal of price stability and there is no constant monetary policy. Fed is independent of Government agencies and its branches. It is financed from its own funds and has no say in the budget process.

On the other hand Bank of japan was reviewed for the purpose of its independence. For its independence it was made sure that if the members of this bank hold views different from the government then they should not be dismissed.

In Japan the currency interventions are carried out by the BOJ as a government agent using the government funds. In the US the exchange policy is carried out by the department of treasury. The governor of the bank of Japan has to release regular updates on the monetary polices decisions adopted. Fed submits semi annual reports to the congress.

jeff jeffy answered 1 year ago
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