Monetary policy in Japan during the 1990s was:

Question

Quizplus · Accepted Answer

The monetary policy in Japan during the 1990s was largely ineffective due to the poor health of the financial institutions. The central bank lowered interest rates, but the banks were unable to lend due to a large number of bad loans on their balance sheets. This led to a vicious cycle where the banks couldn't lend, businesses couldn't borrow, and the economy remained stagnant. The lack of effective monetary policy was a contributing factor to the prolonged recession in Japan during this time.

Monetary Policy in Japan During the 1990s Was