Bank of Japan

Last updated

Bank of Japan
日本銀行 (in Japanese)
Ri Ben Yin Xing rogo.svg

Bank of Japan headquarters in Tokyo, Japan.jpg
Headquarters in Tokyo
Headquarters Chūō, Tokyo, Japan
Coordinates 35°41′10″N139°46′17″E / 35.6861°N 139.7715°E / 35.6861; 139.7715
Established27 June/10 October 1882
Ownership Government of Japan (55%; 100% voting interest)
Public float (45%) [1]
Traded as: TYO: 8301
Governor Kazuo Ueda
(9 April 2023 – present)
Central bank ofFlag of Japan.svg  Japan
Currency Japanese yen
JPY (ISO 4217)
Reserves1 179 500 million USD [2]
Bank rate –0.10% [3]

The Bank of Japan (日本銀行, Nippon Ginkō, BOJ, JASDAQ:  8301) is the central bank of Japan. [4] The bank is often called Nichigin (日銀) for short. It has its headquarters in Chūō, Tokyo. [5]



Like most modern Japanese institutions, the Bank of Japan was founded after the Meiji Restoration. Prior to the Restoration, Japan's feudal fiefs all issued their own money, hansatsu , in an array of incompatible denominations, but the New Currency Act of Meiji 4 (1871) did away with these and established the yen as the new decimal currency, which had parity with the Mexican silver dollar. [6] The former han (fiefs) became prefectures and their mints became private chartered banks which, however, initially retained the right to print money. For a time both the central government and these so-called "national" banks issued money. A period of unanticipated consequences was ended when the Bank of Japan was founded in Meiji 15 (10 October 1882), under the Bank of Japan Act 1882 (27 June 1882), after a Belgian model. It has since been partly privately owned (its stock is traded over the counter, hence the stock number). [7] A number of modifications based on other national banks were encompassed within the regulations under which the bank was founded. [8] The institution was given a monopoly on controlling the money supply in 1884, but it would be another 20 years before the previously issued notes were retired. [9]

Following the passage of the Convertible Bank Note Regulations (May 1884), the Bank of Japan issued its first banknotes in 1885 (Meiji 18). Despite some small glitches—for example, it turned out that the konjac powder mixed in the paper to prevent counterfeiting made the bills a delicacy for rats—the run was largely successful. In 1897, Japan joined the gold standard, [10] and in 1899 the former "national" banknotes were formally phased out.

The Osaka branch of the Bank of Japan is seen in the top right of this 1930 aerial photograph. The wide street in front of the bank is part of the Mido-Suji. Nakanoshima 1930.jpg
The Osaka branch of the Bank of Japan is seen in the top right of this 1930 aerial photograph. The wide street in front of the bank is part of the Mido-Suji.

Since its Meiji era beginnings, the Bank of Japan has operated continuously from main offices in Tokyo and Osaka.


The Bank of Japan was reorganized in 1942 [4] (fully only after 1 May 1942), under the Bank of Japan Act of 1942 (日本銀行法 昭和17年法律第67号), promulgated on 24 February 1942. There was a brief post-war period during the Occupation of Japan when the bank's functions were suspended, and military currency was issued. In 1949, the bank was again restructured. [4]

In the 1970s, the bank's operating environment evolved along with the transition from a fixed foreign currency exchange rate and a rather closed economy to a large open economy with a variable exchange rate. [11]

During the entire post-war era, until at least 1991, the Bank of Japan's monetary policy has primarily been conducted via its 'window guidance' (窓口指導) credit controls (which are the model for the Chinese central bank's primary tool of monetary policy implementation), whereby the central bank would impose bank credit growth quotas on the commercial banks. The tool was instrumental in the creation of the 'bubble economy' of the 1980s. It was implemented by the Bank of Japan's then "Business Department" (営業局), which was headed during the "bubble years" from 1986 to 1989 by Toshihiko Fukui (who became deputy governor in the 1990s and governor in 2003). [12]

A major 1997 revision of the Bank of Japan Act was designed to give it greater independence; [13] however, the Bank of Japan has been criticized for already possessing excessive independence and lacking in accountability before this law was promulgated. [14] A certain degree of dependence might be said to be enshrined in the new Law, article 4 of which states:

In recognition of the fact that currency and monetary control is a component of overall economic policy, the Bank of Japan shall always maintain close contact with the government and exchange views sufficiently, so that its currency and monetary control and the basic stance of the government's economic policy shall be mutually harmonious.

However, since the introduction of the new law, the Bank of Japan has rebuffed government requests to stimulate the economy. [15]

The trail of policies

Japan money supply and inflation (year over year)
.mw-parser-output .legend{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .legend-color{display:inline-block;min-width:1.25em;height:1.25em;line-height:1.25;margin:1px 0;text-align:center;border:1px solid black;background-color:transparent;color:black}.mw-parser-output .legend-text{}
M2 money supply
Inflation Japan money supply and inflation.webp
Japan money supply and inflation (year over year)
  M2 money supply

When the Nixon shock happened in August 1971, the Bank of Japan (BOJ) could have appreciated the currency in order to avoid inflation. However, they still kept the fixed exchange rate as 360Yen/$ for two weeks, so it caused excess liquidity. In addition, they persisted with the Smithsonian rate (308Yen/$), and continued monetary easing until 1973. This created a greater-than-10% inflation rate at that time. In order to control stagflation, they raised the official bank rate from 7% to 9% and skyrocketing prices gradually ended in 1978.

In 1979, when the energy crisis happened, the BOJ raised the official bank rate rapidly. The BOJ succeeded in a quick economic recovery. After overcoming the crisis, they reduced the official bank rate. In 1980, the BOJ reduced the official bank rate from 9.0% to 8.25% in August, to 7.25% in November, and to 5.5% in December in 1981. "Reaganomics" was in vogue in America and USD became strong. However, Japan tried to implement fiscal reconstruction at that time, so they did not stop their financial regulation.

In 1985, the agreement of G5 nations, known as the Plaza Accord, USD slipped down and Yen/USD changed from 240yen/$ to 200yen/$ at the end of 1985. Even in 1986, USD continued to fall and reached 160yen/$. In order to escape deflation, the BOJ cut the official bank rate from 5% to 4.5% in January, to 4.0% in March, to 3.5% in April, 3.0% in November. At the same time, the government tried to raise demand in Japan in 1985, and did economy policy in 1986. However, the market was confused about the rapid fall of USD. After the Louvre Accord in February 1987, the BOJ decreased the official bank rate from 3% to 2.5%, but JPY/USD was 140yen/$ at that time and reached 125yen/$ in the end of 1987. The BOJ kept the official bank rate at 2.5% until May in 1989. Financial and fiscal regulation led to a widespread over-valuing of real estate and investments and Japan faced a bubble at that time.

Japan bonds
Inverted yield curve in 1990
Zero interest-rate policy started in 1995
30 year
20 year
10 year
5 year
2 year
1 year Japan bonds.webp
Japan bonds
Inverted yield curve in 1990
Zero interest-rate policy started in 1995
  30 year
  20 year
  10 year
  5 year
  2 year
  1 year

After 1990, the stock market and real asset market fell. At that time BOJ regulated markets until 1991 in order to end the bubble.

In January 1995, a terrible earthquake happened and Japanese yen became stronger and stronger. JPY/USD reached 80yen/$, so the BOJ reduced the office bank rate to 0.5% and the yen recovered. The period of deflation started at that time.

In 1999, the BOJ started zero-interest-rate policy (ZIRP), but they ended it despite government opposition when the IT bubble happened in 2000. However, Japan's economic bubble burst in 2001 and the BOJ adopted the balance of current account as the main operating target for the adjustment of the financial market in March 2001 (quantitative relaxation policy), shifting from the zero-interest-rate policy. From 2003 to 2004, Japanese government did exchange intervention operation in huge amount, and the economy recovered a lot. In March 2006, BOJ finished quantitative easing, and finished the zero-interest-rate policy in June and raised to 0.25%.

In 2008, the financial crisis happened, and Japanese economy turned bad again. BOJ reduced the uncollateralized call rate to 0.3% and adopted the supplemental balance of current account policy. In December 2008, BOJ reduced uncollateralized call rate again to 0.1% and they started to buy Japanese Government Bond (JGB) along with commercial paper (CP) and corporate bonds. [16]

Japanese bond market
Negative interest rates started in 2014.
40 year bond
10 year bond
5 year bond
1 year bond
1 month bond Japanese Bond Market.webp
Japanese bond market
Negative interest rates started in 2014.
  40 year bond
  10 year bond
  5 year bond
  1 year bond
  1 month bond

In 2013, the head of the BOJ (Kuroda) announced a new quantitative easing program (QE). This program would be very large in terms of quantity, but it would also be different in terms of quality—qualitative easing (QQE). In other words, the BOJ would (and did) also purchase riskier assets like stocks and REITs. [17]

In 2016, the BOJ initiated yield curve control (YCC). [18]

In 2016, the BOJ started its negative interest rates policy (NIRP). [18]

They are the largest owner of Japanese stocks. [19] [20] [21]

Curbing deflation

Following the election of Prime Minister Shinzō Abe in December 2012, the Bank of Japan, with Abe's urging, took proactive steps to curb deflation in Japan. On 30 October 2012, The Bank of Japan announced that it would undertake further monetary-easing action for the second time in a month. [22] Under the leadership of new Governor Haruhiko Kuroda, the Bank of Japan released a statement on 5 April 2013 announcing that it would be purchasing securities and bonds at a rate of 60-70 trillion yen a year in an attempt to double Japan's money base in two years. [23] But by 2016, it was apparent that three years of monetary easing had had little effect on deflation so the Bank of Japan instigated a review of its monetary stimulus program. [24]


The place of the foundation of the Bank of Japan The place of the foundation of the Bank of Japan.jpg
The place of the foundation of the Bank of Japan

According to its charter, the missions of the Bank of Japan are


The Bank of Japan is headquartered in Nihonbashi, Chūō, Tokyo, on the site of a former gold mint (the Kinza) and, not coincidentally, near the famous Ginza district, whose name means "silver mint". The Neo-baroque Bank of Japan building in Tokyo was designed by Tatsuno Kingo in 1896.

The Osaka branch in Nakanoshima is sometimes considered as the structure which effectively symbolizes the bank as an institution.


Governor of the Bank of Japan
Kazuo Ueda 20230410meeting01.jpg
Kazuo Ueda
since 9 April 2023
Style His Excellency
AppointerThe Prime Minister
Term length Five years
Inaugural holder Yoshihara Shigetoshi
Formation6 October 1882

The governor of the Bank of Japan (総裁, sōsai) has considerable influence on the economic policy of the Japanese government.

List of governors

#GovernorTook officeLeft office
1 Yoshihara Shigetoshi 6 October 188219 December 1887
2 Tomita Tetsunosuke 21 February 18883 September 1889
3 Kawada Koichiro 3 September 18897 November 1896
4 Iwasaki Yanosuke 11 November 189620 October 1898
5 Tatsuo Yamamoto 20 October 189819 October 1903
6 Shigeyoshi Matsuo 20 October 19031 June 1911
7 Korekiyo Takahashi 1 June 191120 February 1913
8 Yatarō Mishima 28 February 19137 March 1919 [25]
9 Junnosuke Inoue (First)13 March 19192 September 1923
10 Otohiko Ichiki 5 September 192310 May 1927
11Junnosuke Inoue (Second)10 May 192712 June 1928
12 Hisaakira Hijikata 12 June 19284 June 1935
13 Eigo Fukai 4 June 19359 February 1937
14 Seihin Ikeda 9 February 193727 July 1937
15 Toyotaro Yuki 27 July 193718 March 1944
16 Keizo Shibusawa 18 March 19449 October 1945
17 Eikichi Araki (First)9 October 19451 June 1946
18 Hisato Ichimada 1 June 194610 December 1954
19Eikichi Araki (Second)11 December 195430 November 1956
20 Masamichi Yamagiwa 30 November 195617 December 1964
21 Makoto Usami 17 December 196416 December 1969
22 Tadashi Sasaki 17 December 196916 December 1974
23 Teiichiro Morinaga 17 December 197416 December 1979
24 Haruo Maekawa 17 December 197916 December 1984
25 Satoshi Sumita 17 December 198416 December 1989
26 Yasushi Mieno 17 December 198916 December 1994
27 Yasuo Matsushita 17 December 199420 March 1998
28 Masaru Hayami 20 March 199819 March 2003
29 Toshihiko Fukui 20 March 200319 March 2008
30 Masaaki Shirakawa 9 April 200819 March 2013
31 Haruhiko Kuroda 20 March 20139 April 2023
32 Kazuo Ueda 9 April 2023Incumbent

Monetary Policy Board

As of 9 April 2023, the board responsible for setting monetary policy consisted of the following 9 members: [26]

  1. Kazuo Ueda, Governor of the BOJ
  2. Masayoshi Amamiya, Deputy Governor of the BOJ
  3. Masazumi Wakatabe, Deputy Governor of the BOJ
  4. Yutaka Harada
  5. Yukitoshi Funo
  6. Makoto Sakurai
  7. Takako Masai
  8. Hitoshi Suzuki
  9. Goushi Kataoka

Subsidiaries and properties

Bank of Japan owns 4.7% of the Tokyo Stock Exchange. [27] Since 2020 it has owned more of the market than any other body. [28]

See also


  1. "Outline of the Bank".
  2. Weidner, Jan (2017). "The Organisation and Structure of Central Banks" (PDF). Katalog der Deutschen Nationalbibliothek.
  3. "Home : 日本銀行 Bank of Japan". Bank of Japan. Archived from the original on 2 June 2020. Retrieved 4 August 2019.
  4. 1 2 3 Nussbaum, Louis Frédéric. (2005). "Nihon Ginkō" in Japan encyclopedia, p. 708. , p. 708, at Google Books
  5. "Guide Map to the Bank of Japan Tokyo Head Office. Archived 2009-06-04 at the Wayback Machine ". Bank of Japan. Retrieved 22 December 2009.
  6. Nussbaum, "Banks", Bank of Japan , p. 69, at Google Books.
  7. Vande Walle, Willy et al. "Institutions and ideologies: the modernization of monetary, legal and law enforcement 'regimes' in Japan in the early Meiji-period (1868-1889)" Archived 16 May 2013 at the Wayback Machine (abstract). FRIS/Katholieke Universiteit Leuven, 2007; retrieved 17 October 2012.
  8. Longford, Joseph Henry. (1912). Japan of the Japanese Archived 30 March 2015 at the Wayback Machine , p. 289.
  9. Cargill, Thomas et al. (1997). The political economy of Japanese monetary policy Archived 28 April 2016 at the Wayback Machine , p. 10.
  10. Nussbaum, "Banks", Bank of Japan , p. 70, at Google Books
  11. Cargill, p. 197. Archived 28 April 2016 at the Wayback Machine
  12. Werner, Richard (2002). "Monetary Policy Implementation in Japan: What They Say vs. What they Do", Asian Economic Journal, vol. 16, no. 2, Oxford: Blackwell, pp. 111–151; Werner, Richard (2001). Princes of the Yen Archived 31 March 2015 at the Wayback Machine , Armonk: M. E. Sharpe.
  13. Cargill, p. 19. Archived 28 April 2016 at the Wayback Machine
  14. Horiuchi, Akiyoshi (1993), "Japan" in Chapter 3, "Monetary policies" in Haruhiro Fukui, Peter H. Merkl, Hubrtus Mueller-Groeling and Akio Watanabe (eds), The Politics of Economic Change in Postwar Japan and West Germany, vol. 1, Macroeconomic Conditions and Policy Responses, London: Macmillan. Werner, Richard (2005), New Paradigm in Macroeconomics, London: Macmillan.
  15. See rebuffed requests by the government representatives at BOJ policy board meetings: e.g. "Minutes of the Monetary Policy Meeting on November 30, 2000". Archived from the original on 17 November 2007. Retrieved 9 September 2010. or refusals to increase bond purchases: Bloomberg News. Archived 29 October 2014 at the Wayback Machine
  16. Kuroda Haruhiko(2013)財政金融政策の成功と失敗
  17. "Quantitative and Qualitative Monetary Easing" (PDF). Archived (PDF) from the original on 17 April 2013.
  18. 1 2 "Bank of Japan: Japan Yield Curve Control Regime | Columbia SIPA".
  19. Andrew Whiffin (1 April 2019). "BoJ's dominance over ETFs raises concern on distorting influence". Financial Times. Archived from the original on 30 November 2020. Retrieved 25 February 2021. the BoJ was ranked as a top ten shareholder in some 40 per cent of all Japan's listed companies last year, according to Nikkei.
  20. "BOJ Becomes Biggest Japan Stock Owner With $434 Billion Hoard". 6 December 2020. Archived from the original on 17 February 2021. Retrieved 25 February 2021.
  21. "BOJ's ETF buying not distorting markets: Kuroda". Business Times . Reuters. 28 January 2021. Archived from the original on 4 February 2021. Retrieved 25 February 2021.
  22. "Bank of Japan Expands Asset-Purchase Program". The Wall Street Journal. Archived from the original on 16 November 2017. Retrieved 3 August 2017.
  23. Riley, Charles (4 April 2013). "Bank of Japan takes fight to deflation". CNN. Archived from the original on 29 October 2020. Retrieved 2 August 2020.
  24. Stanley White (31 July 2016). "'Helicopter monet' talk takes flight as Bank of Japan runs out of runway". The Japan Times. Reuters. Archived from the original on 4 August 2016. Retrieved 1 August 2016.
  25. Masaoka, Naoichi. (1914). Japan to America, p. 127. Archived 27 April 2016 at the Wayback Machine
  26. "Policy Board : 日本銀行 Bank of Japan". Archived from the original on 7 April 2018. Retrieved 30 April 2018.
  27. "Bank of Japan to be top shareholder of Japan stocks". Archived from the original on 24 April 2020. Retrieved 20 April 2020.
  28. "BOJ Becomes Biggest Japan Stock Owner With $434 Billion Hoard". 6 December 2020. Retrieved 12 October 2021.

References and further reading

Related Research Articles

<span class="mw-page-title-main">Economy of Japan</span> National economy of Japan

The economy of Japan is a highly developed/advanced social market economy, often referred to as an East Asian model. It is the third-largest in the world by nominal GDP and the fourth-largest by purchasing power parity (PPP). It is the world's second-largest developed economy. Japan is a member of both the G7 and G20. According to the IMF, the country's per capita GDP (PPP) was at $51,809 (2023). Due to a volatile currency exchange rate, Japan's GDP as measured in dollars fluctuates sharply. The Japanese economy is forecast by the Quarterly Tankan survey of business sentiment conducted by the Bank of Japan. The Nikkei 225 presents the monthly report of top blue chip equities on the Japan Exchange Group, which is the world's fifth-largest stock exchange by market capitalisation. In 2018, Japan was the world's fourth-largest importer and the fourth-largest exporter. It has the world's second-largest foreign-exchange reserves, worth $1.4 trillion. It ranks 5th on the Global Competitiveness Report. It ranks first in the world in the Economic Complexity Index. Japan is also the world's fourth-largest consumer market.

<span class="mw-page-title-main">Japanese yen</span> Official currency of Japan

The yen is the official currency of Japan. It is the third-most traded currency in the foreign exchange market, after the United States dollar (US$) and the euro. It is also widely used as a third reserve currency after the US dollar and the euro.

<span class="mw-page-title-main">Deflation</span> Decrease in the general price level of goods and services

In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0%. Inflation reduces the value of currency over time, but sudden deflation increases it. This allows more goods and services to be bought than before with the same amount of currency. Deflation is distinct from disinflation, a slow-down in the inflation rate, i.e. when inflation declines to a lower rate but is still positive.

<span class="mw-page-title-main">Plaza Accord</span> 1985 international agreement on fiscal policy

The Plaza Accord was a joint–agreement signed on September 22, 1985, at the Plaza Hotel in New York City, between France, West Germany, Japan, the United Kingdom, and the United States, to depreciate the U.S. dollar in relation to the French franc, the German Deutsche Mark, the Japanese yen and the British pound sterling by intervening in currency markets. The U.S. dollar depreciated significantly from the time of the agreement until it was replaced by the Louvre Accord in 1987. Some commentators believe the Plaza Accord contributed to the Japanese asset price bubble of the late 1980s.

<span class="mw-page-title-main">Zero interest-rate policy</span>

Zero interest-rate policy (ZIRP) is a macroeconomic concept describing conditions with a very low nominal interest rate, such as those in contemporary Japan and in the United States from December 2008 through December 2015. ZIRP is considered to be an unconventional monetary policy instrument and can be associated with slow economic growth, deflation and deleverage.

<span class="mw-page-title-main">Masaru Hayami</span>

Masaru Hayami was a Japanese businessman, central banker, the 28th Governor of the Bank of Japan (BOJ) and a Director of the Bank for International Settlements (BIS).

<span class="mw-page-title-main">Japanese asset price bubble</span> Economic bubble in Japan from 1986 to 1991

The Japanese asset price bubble was an economic bubble in Japan from 1986 to 1991 in which real estate and stock market prices were greatly inflated. In early 1992, this price bubble burst and Japan's economy stagnated. The bubble was characterized by rapid acceleration of asset prices and overheated economic activity, as well as an uncontrolled money supply and credit expansion. More specifically, over-confidence and speculation regarding asset and stock prices were closely associated with excessive monetary easing policy at the time. Through the creation of economic policies that cultivated the marketability of assets, eased the access to credit, and encouraged speculation, the Japanese government started a prolonged and exacerbated Japanese asset price bubble.

<span class="mw-page-title-main">Quantitative easing</span> Monetary policy tool

Quantitative easing (QE) is a monetary policy action where a central bank purchases predetermined amounts of government bonds or other financial assets in order to stimulate economic activity. Quantitative easing is a novel form of monetary policy that came into wide application after the financial crisis of 2007‍–‍2008. It is used to mitigate an economic recession when inflation is very low or negative, making standard monetary policy ineffective. Quantitative tightening (QT) does the opposite, where for monetary policy reasons, a central bank sells off some portion of its holdings of government bonds or other financial assets.

<span class="mw-page-title-main">Masaaki Shirakawa</span> Japanese economist

Masaaki Shirakawa is a Japanese economist and the 30th Governor of the Bank of Japan (BOJ), and professor at Aoyama Gakuin University. He is also a Director and Vice-Chairman of the Bank for International Settlements (BIS).

Takatoshi Ito is a Japanese economist. He is a professor of the School of International and Public Affairs, Columbia University and a senior professor of the National Graduate Institute for Policy Studies.

<span class="mw-page-title-main">Currency intervention</span> Monetary policy operation

Currency intervention, also known as foreign exchange market intervention or currency manipulation, is a monetary policy operation. It occurs when a government or central bank buys or sells foreign currency in exchange for its own domestic currency, generally with the intention of influencing the exchange rate and trade policy.

<span class="mw-page-title-main">Lost Decades</span> Period of economic stagnation in Japan

The Lost Decade was a period of economic stagnation in Japan caused by the asset price bubble's collapse in late 1991. The term originally referred to the 1990s, but the 2000s and the 2010s have been included by commentators as the phenomenon continued.

The 1 yen note (1円券) was a denomination of Japanese yen in seven different series from 1872 to 1946 for use in commerce. These circulated with the 1 yen coin until 1914, and briefly again before the notes were suspended in 1958. Notes from the Japanese government, known as "government notes," were the first to be issued through a company in Germany. Because they were being counterfeited, they were replaced by a new series which included the first portrait on a Japanese banknote. Almost concurrently, the government established a series of national banks modeled after the system in the United States. These national banks were private entities that also released their own notes which were later convertible into gold and silver. All three of these series came to an end due to massive inflation from the Satsuma Rebellion in 1877. National bank notes were re-issued as fiat currency before the national banks themselves were abolished. Both national bank and government one yen notes were gradually redeemed for Bank of Japan note starting in 1885. This redemption process lasted until all three series were abolished in 1899.

Richard Andreas Werner is a German banking and development economist who is a university professor at University of Winchester.

Yasushi Mieno was a Japanese businessman, central banker, the 26th Governor of the Bank of Japan (BOJ) and a Director of the Bank for International Settlements (BIS).

<span class="mw-page-title-main">Haruhiko Kuroda</span> Japanese central banker

Haruhiko Kuroda is a Japanese banker and a former Ministry of Finance government official who served as the 31st Governor of the Bank of Japan (BOJ) from March 2013 to April 2023 and is currently a Professor at the National Graduate Institute for Policy Studies (GRIPS). From 2003 Mr Kuroda served as Special Advisor to the Cabinet of Prime Minister Koizumi, while teaching economics and finance as a Professor at the Hitotsubashi University Graduate School of Economics. He was formerly the President of the Asian Development Bank from 1 February 2005 to 18 March 2013.

As of March 2023, the Japanese public debt is estimated to be approximately 9.2 trillion US Dollars, or 263% of GDP, and is the highest of any developed nation. 43.3% of this debt is held by the Bank of Japan.

<span class="mw-page-title-main">Abenomics</span> Japanese economic policy since the 2012 re-election of Shinzo Abe as Prime Minister

Abenomics refers to the economic policies implemented by the Government of Japan led by the Liberal Democratic Party (LDP) since the December 2012 general election. They are named after Shinzō Abe, who served a second stint as Prime Minister of Japan from 2012 to 2020. Abe was the longest-serving prime minister in Japanese history. After Abe resigned in September 2020, his successor, Yoshihide Suga, has stated that his premiership will focus on continuing the policies and goals of the Abe administration, including the Abenomics suite of economic policies.

The 2 yen note (2円券) was a denomination of Japanese yen issued in two different overlapping series from 1872 to 1880 for use in commerce. Meiji Tsūhō "two yen" notes were the first to be released as inconvertible government notes in 1872. These notes were produced both domestically, and in Germany using western technology. While they had an elaborate design, the notes eventually suffered in paper quality, and were counterfeited. Two yen Meiji Tsūhō notes were not redesigned with other denominations in response to these issues. The series as a whole was effected by massive inflation that occurred during the aftermath of the Satsuma Rebellion in 1877. Too many non convertible notes had been issued to pay for the expenses incurred. Government notes stopped being issued in 1879, and the Bank of Japan was established in 1882 as a way to redeem old notes for new ones issued by the bank. This redemption period expired when the notes were abolished on December 9, 1899.

The 5 yen note (5円券) was a denomination of Japanese yen in twelve different series from 1872 to 1955 for use in commerce. Only those from the "A series", which was issued from 1946 to 1955 are legal tender today.