This paper discusses and analyzes the monetary policy of Japan. The country has been following deflationary monetary measures, which have had a negative impact on economic activity and have lowered the rate of both consumer spending and investment in Japan. The best and most significant measure of the performance of monetary policy is prices of goods in the country and therefore it is believed that perpetual price instability in Japan indicates poor performance of monetary policy. 6-pages, bibliography lists 4 sources.
