This paper describes the basic structure and multipliers of the revised version of the CAO Short-Run Macroeconometric Model of the Japanese Economy, which was firstly released in 1998 (Hori et al. [1998]). The model is basically a demand-oriented, traditional Keynesian-type model with IS-LM-BP...

Japanese economic activities have generally been stagnant during the last decade in the 1990s, with occasional signs of modest improvement. Among others, one reason of such weak economic developments has been attributed to delay in easing the financial policy. This paper is attempting to provide...

In this paper, we tried to examine empirically the constraints to monetary policy posed by the zero-lower bound on nominal interest rates. To evaluate numerically the views expressed on policy effectiveness, we run several policy simulations, making full use of the two different versions of the...

This paper attempts to introduce forward-looking expectations to the ESRI Short-Run Macroeconomic Model. The effects of changes in fiscal and monetary policy are evaluated under two alternative expectation formations, namely, adaptive expectations and forward-looking ones. For the latter,...