Description

This paper asks whether the BoJ's recent experience with unconventional monetary easing has been effective in supporting economic activity and inflation. Using a structural VAR model, the paper finds some evidence that BoJ's monetary policy measures during 1998-2010 have had an impact on economic activity but less so on inflation. These results are stronger than those in earlier studies looking at the quantitative easing period up to 2006 and may reflect more effective credit channel as a result of improvements in the banking and corporate sectors. Nevertheless, the relative contribution of monetary policy measures to the variation in output and inflation is rather small.

Taxonomy

Banks and banking , Central banks , Cooperation Council for the Arab States of the Gulf , Deflation , Economic cooperation , Economic policy , Financial institutions and markets , Fiscal policy , Inflation , International organizations , Monetary policy

More publications in this series: Working Papers

More publications by: Pelin Berkmen