The Bank of Japan (BOJ) estimates the output gap and the potential growth rate, and uses these in judging economic and price conditions. The output gap and potential growth rate have been recently re-estimated in light of the benchmark revision of the GDP statistics at the end of 2005. At the...

Macroeconomic models are effective tools for central banks in economic projection, including risk assessment. In recent years, a multiple-model approach called the "Suite of Models" has become popular with central banks. This approach advocates the use of multiple models for several purposes,...

Funding conditions in global money markets have tightened since August 2007. In various currency-denominated money markets, term funding rates have come under upward pressure because of heightened concerns about counterparty credit and liquidity risks. Although the magnitude of upward pressure...

Window guidance is considered an important instrument of monetary policy by Chinese monetary authorities. Since the middle of 2009, window guidance has been strengthened in response to their fast growing economy and rising real estate prices, leading to the current slowdown in loan growth....

Global commodity prices have been rising again since 2009, and particularly rapidly since the fall of 2010. While the strong increase in commodity prices has been driven by global economic growth propelled by emerging economies, speculative investment flows into commodity markets have amplified...