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In Japan, monetary authorities facing the same situation of asset inflation with stable consumer prices concluded that it was the role of the central bank to deal with the issue, and the Bank of Japan fought aggressively, with a very fast hike of the official discount rate, from 2. The ministry's ability to set the bank's official discount rate under the pre-1998 central bank law led many, including the ministry, to believe that MoF, rather than BoJ, was in control of the monetary policy. By the time Mieno resigned in late 1994, the bank's official discount rate was at 1. |
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