The Effects of Monetary Policy in Japan

May 2002
Journal of Money, Credit & Banking (Ohio State University Press);May2002, Vol. 34 Issue 2, p376
Academic Journal
This article interprets time series facts regarding the sources of business fluctuations in Japan and attempts to uncover possible characteristics of the effects of monetary policy over the last two decades. It argues that given the institutional features of the Bank of Japan's operating procedures, a simple recursive vector autoregressive (VAR) model that consists of interest rates, money, stock prices, and output, all in first differences, may serve as a useful benchmark for Japan. The main finding is that monetary policy shocks in fact have a persistent effect on real output especially in the rise and fall of Japan's "bubble economy" in the late 1980s.


Related Articles

  • Throwing yen at the Japanese. Francis, David R. // Christian Science Monitor;2/22/99, Vol. 91 Issue 59, p6 

    Focuses on Japan's efforts to put more money into the economy in 1999. How the world markets have responded; The issuing vouchers that can be used at stores in Japan; How this expands the nation's money supply; Interest rates in Japan.

  • Japan Is Back, So Beware. Tasker, Peter // Newsweek (Pacific Edition);3/20/2006 (Pacific Edition), Vol. 147 Issue 12, p41 

    The article looks at how the Bank of Japan's decision in March 2006 to stop "quantitative easing," or pumping money into banks, heralds the end of free money in Japan. The decision is its first real monetary tightening since Japan's bubble economy imploded. The article discusses how Japan is...

  • Tests of the Money Neutrality and Rationality Hypotheses: The Case of Japan 1973-1985. GOCHOCO, MARIA S. // Journal of Money, Credit & Banking (Ohio State University Press);Nov86, Vol. 18 Issue 4, p458 

    The article reports on the money neutrality and rationality in Japan. The macroeconomic rational expectations hypothesis is used in testing money neutrality and rationality in Japan. Research on Japan has found that money does not have a neutral effect on production. During the period of...

  • The difficulties of the Chinese and Indian exchange rate regimes. Patnaik, Ila; Shah, Ajay // European Journal of Comparative Economics;2009, Vol. 6 Issue 1, p157 

    China and India have both sought control over the exchange rate in order to maintain export competitiveness, manage current account balance, and pursue independent monetary policy. In this paper, we examine structural change in the Chinese and Indian de facto exchange rate regimes, focusing on...

  • Gaps and Triangles. Adão, Bernardino; Correia, Isabel; Teles, Pedro // Review of Economic Studies;Oct2003, Vol. 70 Issue 4, p699 

    In this paper, we derive principles of optimal cyclical monetary policy in an economy without capital, with a cash-in-advance restriction on household transactions, and monopolistic firms that set prices one period in advance. The only distortionary policy instruments are the nominal interest...

  • CONVERGENCE IN THE MONETARY POLICY STANCE DURING THE PRE-EMU PERIOD CASE OF CZECH REPUBLIC AND POLAND. Mlodkowski, Pawel // 11th International Conference on Finance & Banking: Future of th;2007, p558 

    Monetary policy stance assessment is an important subject for both economists and policymakers. The literature offers vast variety of methods in this regard. The main weakness of most of them is that they are biased by a country-specific factors and are not useful for cross-country studies. The...

  • Economic Fluctuations and the Role of Monetary Policy: An Investigation of an Agent-based Model. Chotiputsilp, Ratchanon // GSTF Business Review;Dec2015, Vol. 4 Issue 2, p68 

    The merit of ABM comes directly from removing set of unreal assumptions that are commonly assumed in standard models. Not only can ABM regenerates macroeconomics regularities at the same level as the traditional models without introducing any exogenous process but also displays the ability to...

  • The Exact Timing of the Collapse of an Exchange Rate Regime and Its Impact on the Relative Price of Traded Goods. CONNOLLY, MICHAEL B.; TAYLOR, DEAN // Journal of Money, Credit & Banking (Ohio State University Press);May84, Vol. 16 Issue 2, p194 

    This article examines the timing of the collapse of an exchange rate regime and the impact this has on the relative price of traded goods. The authors examine the relationship between a fixed exchange rate, a fixed rate of crawl and a monetary growth rule. They examine several counties that...

  • Monetary Policy and Financial Stability. Hrnčíř, Miroslav // Economic Studies & Analyses / Acta VSFS;2012, Vol. 6 Issue 1, p44 

    The article deals with the interaction between monetary policy and financial stability. The discussion is focused on the impact of the world financial crisis on monetary policy orientation. The question is raised whether the established consensus on the goals and instruments of monetary policy...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics