The paper deals with the relationship between economics and monetary policy from 1945 to 1984, conducted by the Bank of Japan. During the period Japan has experienced almost all types of growth rate change from high inflation to disinflation, and the monetary policy of the BOJ was discussed, and sometimes criticized. The paper shows that the behavior of the BOJ has been trying to be consistent with its particular interpretation of the policy objective, prescriptions, and past history as well as its bureaucratic concern over its own survival as an organization. However, this does not mean that there has been no conflict of ideas within the BOJ. Despite its attempt to portray itself as a unified entity, there have been several strands of thought within it, which evolved historically.
Keywords: The Bank of Japan, Japanese Economy, History of Economics in Japan
Jel Code: B20, E58, N15