Where the Bank of Japan errs

• Published in: The Wall Street journal. Eastern edition
• Main Author: Gitlitz, David
• Format: Newspaper Article
• Language: English
• Published: New York, N.Y Dow Jones & Company Inc 21.04.1995
• Edition: Eastern edition
• Subjects: American dollar; Bank reserves; Banking industry; Central banks; Discount rates; Foreign exchange; Interest rates; Monetary policy; Japan

David Gitlitz comments on the Apr 14, 1995 move by the Bank of Japan to cut its already historically low discount rate by 75 basis points, to 1%. Gitlitz says the Bank of Japan thinks that a lower interest rate means "easier money," but in fact it has been withdrawing massive doses of liqu...