Inflation target was introduced in 2013 in Japan. The goal was to maintain price stability and sustainable inflation rate that is conducive to optimal consumption and investment decisions. However, Japanese inflation rate has been consistently below the target rate. We want to examine why the failure happens in such a big economy. This thesis focuses on inflation expectation as the main factor that leads to unanchored inflation. Inflation expectation can be distinguished into adaptive and rational expectation. To analyse inflation expectation, we regress inflation on four relevant variables: forecasted inflation, lagged inflation, economic slack and import inflation. Our goal is to identify the significance of forecasted inflation and lagged inflation, which are the main variables, to determine the characteristics of the two types of inflation expectation. This time-series analysis is on a monthly basis covering the period between 2013 and 2018. The results show that agents are near-rational rather than rational, meaning that they tend to overweigh the costs of inflation. Also, it is shown that they have minor but significant backward-looking tendency and believe that past inflation determines the current inflation. Hence, inflation expectation could give some useful insights into unanchored inflation.

The thesis analyses problems of eurozone after the beginning of financial crisis in 2008, which continuously changed into economic and debt crisis. The thesis considers eurozone in aggregate and closer focuses on so called GIIPS (Greece, Ireland, Italy, Portugal, Spain) countries. Recent eurozone economic situation is compared to Japanese "lost decade" during 1990s, I seek for parallels and differences. Theoretical part shows approaches by economic schools to causes of cycle and to role of policymakers. Main challenges of fiscal and monetary policy are considered, specifically fiscal policy in time of high public indebtedness, monetary policy in liquidity trap etc. Applicative part considers causes of the economic situation at the beginning, more specifically devoted to balance sheets recession. Key part of the practical part it is analysis of applied fiscal and monetary policy, including helping efforts to financial system. Concluding remarks summarizes key understanding from the thesis, proposals are included and it is considered whether eurozone is going to follow Japanese path since 90's or not. It seems highly probable that eurozone is going to follow Japanese in terms of sluggish economic growth, parallels can be seen in weak impact of monetary policy in liquidity trap, but recommendations to fiscal policy from Japanese experience should be taken into account in very cautious way because of both specifics of eurozone and Japanese economy.

本篇論文採取歷史制度分析法，比較德國與日本在國家建立的過程中，為何在相似的富強關係及轉折的歷史經驗裡，發展出現行南轅北轍的中央銀行制度，並且試圖解釋為何第二次世界大戰後德國與日本採行不同中央銀行制度，卻同時達致耀眼政治經濟成就的原因。 本研究採用的富強關係架構共有富強並進、搾富求強、外國勢力干政、以富致強等四種組合。至於這四種組合中的哪一種組合出線，又是取決於國家建立過程推移、大型戰爭成敗以及戰敗後外國勢力干政是否解散政權等三個因素。另外，富強的詮釋也會隨著富強關係組合出現順序的改變而改變。然而啟動富強組合轉變的內部因素是啟發戰端，外部因素則是國家在大型戰爭中失利後，外國勢力干政的態度。 結論發現中央銀行制度的起源具有高度國家工具性質，所謂中央銀行政治獨立性是逐漸發展而來，而非制度設計之初衷。而真正造成今日德國與日本中央銀行獨立性差異的關鍵因素是第二次世界大戰後美國對於兩國政權存廢態度不同。最後第二次世界大戰不僅是德國與日本富強關係轉折的媒介由戰爭變為美國霸權維持的國際政經架構的分水嶺，同時也造成德國與日本在國家、區域與自由世界在整合層次上有所差別，進一步使得日後兩國面對金融全球化的步調不同。 / Based on the historical institutional approach, this paper tries to compare the German and Japanese central banks. The author attempts to specify the inter-wining causes and effects of central banking and nation building. German and Japanese central banks had evolved from different bases, despite of the fact that both countries appear to have experienced the remarkable achievements in political and economic arenas after the Second World War. The author has discovered that a plenty-power theme weaving through the institutionalization of both central banks. There are four combinations between the pursuits of plenty and power. They are the simultaneous pursuit of plenty and power, the pursuit of power at the cost of plenty, foreign intervention and leverage plenty to power. Three factors are crucial to the formation and transition of the four combinations: the process of nation-building, the outcome of large-scale war, and the victor foreign states’ attitudes towards the continuance of the legitimacy of the defeated states. Each plenty-power combination has its unique historical goal. Several conclusions can be made from my analysis. First, the central-banking independence is rather the product of historical evolution than the intention of deliberate central-banking institutional design. Second, war has an enormous impact on the central-banking systems in Germany and Japan. The key factor that generated the difference of the central-banking independence between the two countries came largely from America’s different attitudes towards the continuance of the legitimacy of the defeated states. And finally, the Second World War turned out to be the inflection point that changed the plenty-power combination－both Germany and Japan went into the orbit of American hegemony. The post-Second World War world order further gravitated both Germany and Japan towards economic integration into a world economic order.

This thesis is devoted to long-term stagnation of the Japanese economy and potential solutions addressing such issue. The aim of this thesis is to propose a suitable solution to Japan's long-term stagnation. Firstly, the theoretical as well as practical basis of current Japan's stagnation is described. Economic theory and basic economic principles are explained within the theoretical background in order to apply such knowledge to the real economy correctly. Then, Japan's economic development from the second half of the 20th century till present is outlined within the practical background with an emphasis on "Lost decade" and persisting stagnation to better understand the way the Japanese economy functions. Secondly, the causes of Japan's "Lost decade" and persisting stagnation are presented. The theoretical basis of the causes of long-term stagnation is outlined with an emphasis on economic policy as a key instrument that affects the real economy. Then, the causes of Japan's long-term stagnation are deeply analyzed including a confrontation of selected causes by the author. Lastly, potential solutions addressing the issue of long-term economic stagnation are discussed. Existing solutions that aim to end Japan's stagnation are described and assessed. The main contribution of the author lies in proposing a solution to Japan's long-term economic stagnation from the author's perspective including specific measures to restore economic growth.