| Article ID: | iaor19932073 |
| Country: | United States |
| Volume: | 5 |
| Start Page Number: | 131 |
| End Page Number: | 139 |
| Publication Date: | Mar 1993 |
| Journal: | Public Budgeting and Financial Management |
| Authors: | Cargill Thomas F. |
| Keywords: | economics, finance & banking, government, world affairs, planning |
Japan’s inflation record has been impressive by any standard since the Bank of Japan, a dependent central bank, adopted price stability in 1973 as a final policy target. In fact some observers regard the Bank of Japan as a model central bank in terms of commitment to price stabilization. The Bank of Japan thus runs counter to the conventional wisdom that formally independent central banks are better able to control inflation. Japan’s inflation record since 1975 is superior to that of the United States and yet, the Federal Reserve has considerably more formal independence than the Bank of Japan.