Question

1. In what ways are the bank of japan and the bank of England similar to the federal reserve? 2 .In what ways are the bank of Japan and the Bank of England significantly different from the federal reserve? 3.Critics of the Bank of Japan argue that it played a role in the global financial crisis. What do these critics argue A. The bank of Japan raised interest rates too quickly as the crisis was beginning. B. The bank of Japan did not expand its balance sheet as much as the federal Reserve did in response to the crisis. C. The Bank of Japan should have cut taxes to stimulate spending in japan. D. The Bank of Japan purchased far too many bonds at the beginning of the crisis.

Answer 1

Answer 1

Similarities

1. All 3 issue currency

2. Operates Foreign exchnage transactions

3. Operates with government towards fiscal policies of respective countries

4. Stimulates financial system in the country and creates stability

5. Acts as Bank of Banks and drive banking rules and policy making

6. Central banks are free from political influences and decision making

Answer 2

Differnces
Bank of Japan	Bank of England	Federal Reserve
Primary objectives is financial stability	Primary objectives is price stability and control inflation at 2%, due to export dependent economy	Primary objectives include, Price Stability, stable lon term interest rate and provide environment to increase employment
Monitary policy is driven by different economic and financial health indicators	Monitary policy is mostly pre-announced	Federal monitary policy is mostly risk mitigation and management based approach

Answer 3

The bank of Japan did not expand its balance sheet as much as the federal Reserve did in response to the crisis.

US and Japan central banks though adopted similar policies to revive their economy, US was more aggressive than Japan.