This paper proposes an empirical dynamic stochastic general equilibrium (DSGE) framework to measure the degree of monetary policy accommodation when the nominal interest rate is zero. The framework employs a hypothetical DSGE model in which the nominal interest rate can be lowered below zero...

This paper describes Financial Activity Indexes (FAIXs), early warning system for financial imbalances in Japan. We introduced the first version of FAIXs in 2012 and revise FAIXs this time. First, we sort the candidate financial indicators into 14 categories. Second, in each category, we examine...

This paper analyzes the effects on the financial system and the real economy of errors in a reference rate, and the subsequent rapid corrections of the rate. In this analysis, we use the Financial Macro-econometric Model, which reflects an adverse feedback loop between the financial system and...