1. What is deflation? How would increasing the money supply in Japan result in an end to deflation?
2. The Bank of Japan pumped lots of money into the Japanese economy using tactics similar to the Federal Reserve Bank in the United States. When the Fed wishes to put money into the economy, what tools do they use?
3. Consider the ways that Japan's economy would likely be affected by having a strong yen versus a weak yen. Compare and discuss the positive implications and the negative implications for both a strong and a weak yen.
4. How will Japan's new monetary policies have an impact on the U.S. economy? Identify and discuss the ways those policies will be felt in the United States.
5. Consider Japan's trading status as the fourth-largest source of U.S. imports, and the fourth-largest market for U.S. goods exports. Would you expect that status to change soon relative to other U.S. trading partners such as Canada, China, Germany, and others? Explain.