Did "Quantitative and Qualitative Monetary Easing (QQE),'' which has been conducted by the Bank of Japan from April 2013, end the long deflation of the Japanese economy? Answering the question, we constructed a linear projection model to estimate Ex-Ante Real interest Rates (EARRs) and Inflation...

This study investigates changes in the contemporary Japanese economics and the effects of macroeconomic policies in the 1990s. We estimate several vector autoregression (VAR) models employing data detrended by different methods. This paper presents three major findings: First, there is a gradual...

The money multiplier is in a continuous downward trend now since the bubble burst, and, in addition, the trend has accelerated after 2000. It is said that the monetary policy is difficult because the money multiplier has declined. To think about the monetary policy for the future, we should...

Japan's economic growth rate has dropped from three percent in the first half of the 1980s to one percent in the 1990s. We can call this decline the "Great Stagnation." In spite of its importance, there is no agreement on what caused the Great Stagnation. First, we briefly surveyed various...

Although the Bank of Japan has recently (in 2003) conducted an expansionary monetary policy that targets the current accounts balance, additional monetary policies aimed at overcoming the deflationary situation may be necessary. No monetary vehicle to stimulate the economy under the "zero...

Japan has experienced prolonged economic stagnation throughout the 1990s and beyond. The government's monetary policies do not to seem to have been effective in eradicating deflation and increasing the money supply. A decrease in the money multiplier is said to be one reason for this. This paper...