FX Traders' Basic Course in "Adult Economics" — Episode 5 Traditional Monetary Policy and Non-Traditional Monetary Policy [Kōichirō Amayo]

This program allows you to systematically study fundamentals (analysis). The theme this time is central banks' "traditional monetary policy and non-traditional monetary policy." We will primarily explain using Japan, a representative advanced country, as the case.

Table of Contents for the 5th Session

1. Understand the history and background of monetary policy
2. What is traditional monetary policy
3. Zero interest rate policy
4. Quantitative easing (QE) and forward guidance
5. The Lehman Brothers collapse and financial crisis
6. Asset purchases and related funds
7. Price targets and quantitative easing and qualitative easing (QQE)
8. Negative interest rate policy and quantitative and qualitative easing (QQE) with a negative rate
9. Yield curve control and an overshoot commitment
10. Summary of the 5th session

※This article is a reprint/re-edit from FX攻略.com October 2017 issue.

Profile: Kouichirō Amaya (Amaya, Koichiro)

With more than 20 years of experience in top foreign banks such as UBS, JP Morgan, and BNP Paribas, in foreign exchange operations. He has high rankings in the Tokyo foreign exchange market popular dealer rankings in the financial magazine "EuroMoney." In 2006, he became a freelance financial analyst and provides FX market information to FX companies and portal sites from his sharp, independent perspective.

twitter：https://twitter.com/geh02066

Understand the history and background of monetary policy

This adult economics fundamentals course is about central banks' "non-traditional monetary policy." The biggest point of interest in the second half of 2017 is when and how much the United States will raise rates, but even more important is when and how the U.S. will exit non-traditional policies.

This is an opportunity to understand what non-traditional monetary policy is and how central banks moved from traditional monetary policy into the realm of non-traditional policy. For clarity, this article focuses on Japan, a leading non-traditional policy country, as the case.