The Effectiveness of Nontraditional Monetary Policy: The Case of Japan
type="main"> <p>The effectiveness of nontraditional monetary policy is controversial, at least in Japan. Making use of data from the quantitative easing monetary policy period, this paper presents statistical evidence on the effectiveness of nontraditional monetary policy. We demonstrate empirically that the quantitative easing monetary policy adopted by the Bank of Japan for the period from March 2001 to March 2006 had a stimulating effect on investment and production, at least through Tobin's q channel. We also provide a simple operational model in which an injection of base money lowers the interest rate on bonds, reduces the required rate of returns from capital stocks and depreciates the value of the domestic currency.
Year of publication: |
2014
|
---|---|
Authors: | Honda, Yuzo |
Published in: |
The Japanese Economic Review. - Japanese Economic Association - JEA, ISSN 1352-4739. - Vol. 65.2014, 1, p. 1-23
|
Publisher: |
Japanese Economic Association - JEA |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Honda, Yuzo, (2007)
-
Quantitative Easing in Japan from 2001 to 2006 and the World Financial Crisis
Honda, Yuzo, (2011)
-
The effects of the Basle accord on bank credit: the case of Japan
Honda, Yuzo, (2002)
- More ...