Central bankers searching for options to fight the next downturn should look to Japan, where policymakers are gathering for a regular review of the world’s most epic monetary stimulus program.
The Bank of Japan's two-decade journey from zero interest rates to massive asset purchases, negative rates and yield-curve control demonstrates a combination of tools that can be used to sustain stimulus — along with the huge damage that piles up when it drags on too long.
As global economic growth wanes, Europe doles out a fresh round of easing and the U.S., Canada, Britain and Australia put rate hikes on hold, economists are asking what more can be done with scant room to lower borrowing costs and already swollen balance sheets.