Central bank liquidating assests
In 2013, Japan's nominal GDP was still about 6% below its level in the mid-1990s.The Great Recession of 2008-09 sparked fears of a similar period of prolonged deflation in the United States and elsewhere because of the catastrophic collapse in prices of a wide range of assets.The global financial system was also thrown into turmoil by the insolvency of a number of major banks and financial institutions throughout the United States and Europe, exemplified by the collapse of Lehman Brothers in September 2008.In response, in December 2008, the Federal Open Market Committee (FOMC), the Federal Reserve's monetary policy body, turned to two main types of unconventional monetary policy tools: (1) forward policy guidance and (2) large-scale asset purchases, aka quantitative easing (QE).
And the Fed can conduct open market operations to change the federal funds rate.
The Japanese economy, which had been one of the fastest-growing in the world from the 1960s to the 1980s, slowed dramatically.
The '90s became known as Japan's Lost Decade.
A central bank is a financial institution given privileged control over the production and distribution of money and credit for a nation or a group of nations.
In modern economies, the central bank is usually responsible for the formulation of monetary policy and the regulation of member banks.