Portfolio rebalancing is a key transmission channel of quantitative easing in Japan. We construct a realistic …

interest rates as experienced in Japan since the mid-1990s. Our analysis is based on an estimated model of Japan, the United … impact of the zero bound on the effectiveness of interest rate policy in Japan in terms of stabilizing output and inflation …

productivity in Japan. Finally, additional analyses of fund flows and economic survey data suggest that the primary transmission … policy on financial markets, economic activity, and labor markets in Japan empirically by employing exactly the same testing … prices in Japan and improved market expectations. Third, the QE policy recovered labor market conditions and economic …