As monetary policy decisions in Japan and the United States take place this week, expectations of a U.S. rate hike are rising, although the possibility of keeping rates unchanged has also been cited, while the Bank of Japan's monetary policy meeting is widely expected to result in an additional rate hike. In parallel, the appropriate role of fiscal policy under the zero lower bound is being debated. This article presents an expert analysis that organizes and explains the differences in the policy stances of Japan and the United States.
With monetary policy decisions in Japan and the United States scheduled for this week, expectations of a rate hike are rising at the U.S. FOMC, although maintaining the current rate has also been discussed, while an additional rate hike is widely expected at the Bank of Japan's monetary policy meeting. Views leaning hawkish are expected to emerge regarding the policy stance going forward.
The focus is on fiscal policy under the zero lower bound, with discussion centering on the possibility that changes in financial conditions could affect the options available to fiscal policy and its effectiveness. The issue is how the relationship between interest-rate policy and fiscal policy will affect policy implementation going forward.
The article is structured as an expert analysis organizing the developments and background of monetary policy in Japan and the United States, without making definitive claims about individual figures or specific future developments.