IDEAS home Printed from https://ideas.repec.org/a/rau/journl/v11y2016i4p60-70.html
   My bibliography  Save this article

Quantitative Easing Limits. Evidence From Japan

Author

Listed:
  • Andreea-Emanuela Drăgoi

    (Institute for World Economy, Romanian Academy Bucharest)

  • Ana-Cristina Bâlgăr

    (Institute for World Economy, Romanian Academy Bucharest)

Abstract

In the post-crisis reality, the Quantitative Easing (QE) has started to be used as a tool for boosting credit activity and to revival the economic growth. While QE initiatives have been enforced by some advanced economies (U.S., Japan, EU) our paper aims to assess their success,basing its assumptions mainly on the Japanese experience. Our analysis will briefly review several important theoretical contributions to this particular topic presented in the recent scientific literature and will further evaluate, through a SWOT analysis, the strengths and the weaknesses of this unconventional monetary policy. In the final part of our research we will assess the possible success of the European Central Bank’s (ECB) QE initiative through a comparative analysis which takes into account the “lessons learned” from the Japanese experience.

Suggested Citation

  • Andreea-Emanuela Drăgoi & Ana-Cristina Bâlgăr, 2016. "Quantitative Easing Limits. Evidence From Japan," Romanian Economic Business Review, Romanian-American University, vol. 11(4), pages 60-70, december.
    • Handle: RePEc:rau:journl:v:11:y:2016:i:4:p:60-70
    as

    Download full text from publisher

    File URL: http://www.rebe.rau.ro/RePEc/rau/journl/WI16/REBE-WI16-A7.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Joseph E. Gagnon, 2016. "Quantitative Easing: An Underappreciated Success," Policy Briefs PB16-4, Peterson Institute for International Economics.
    2. Hiroshi Ugai, 2006. "Effects of the Quantitative Easing Policy: A Survey of Empirical Analyses," Bank of Japan Working Paper Series 06-E-10, Bank of Japan.
    3. repec:fip:fednsp:y:2013:i:may21 is not listed on IDEAS
    4. William Dudley, 2013. "Lessons at the zero bound: the Japanese and U.S. experience," Speech 105, Federal Reserve Bank of New York.
    5. David Andolfatto & Li Li, 2014. "Quantitative easing in Japan: past and present," Economic Synopses, Federal Reserve Bank of St. Louis, issue 1.
    6. Michael Joyce & David Miles & Andrew Scott & Dimitri Vayanos, 2012. "Quantitative Easing and Unconventional Monetary Policy – an Introduction," Economic Journal, Royal Economic Society, vol. 122(564), pages 271-288, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Neely, Christopher J., 2022. "How persistent are unconventional monetary policy effects?," Journal of International Money and Finance, Elsevier, vol. 126(C).
    2. Claudio Borio & Anna Zabai, 2018. "Unconventional monetary policies: a re-appraisal," Chapters, in: Peter Conti-Brown & Rosa M. Lastra (ed.), Research Handbook on Central Banking, chapter 20, pages 398-444, Edward Elgar Publishing.
    3. Troug, Haytem Ahmed & Murray, Matt, 2015. "Quantitative Easing in Japan and the UK An Econometric Evaluation of the Impacts of Unconventional Monetary Policy on the Returns of Aggregate Output and Price Levels," MPRA Paper 68707, University Library of Munich, Germany.
    4. Stephen Anthony & Hamid Yahyaei, 2022. "Bringing Credibility Back to Macroeconomic Policy Frameworks," Economic Papers, The Economic Society of Australia, vol. 41(3), pages 276-295, September.
    5. Eladio Febrero & Jorge Uxó & Óscar Dejuán, 2015. "The ECB During the Financial Crisis. Not so Unconventional!," Metroeconomica, Wiley Blackwell, vol. 66(4), pages 715-739, November.
    6. Green, Christopher & Bai, Ye & Murinde, Victor & Ngoka, Kethi & Maana, Isaya & Tiriongo, Samuel, 2016. "Overnight interbank markets and the determination of the interbank rate: A selective survey," International Review of Financial Analysis, Elsevier, vol. 44(C), pages 149-161.
    7. Lloyd, S. P., 2017. "Unconventional Monetary Policy and the Interest Rate Channel: Signalling and Portfolio Rebalancing," Cambridge Working Papers in Economics 1735, Faculty of Economics, University of Cambridge.
    8. Inda Mulaahmetovic, 2022. "Evaluating the Effectiveness of Quantitative Easing Measures of the Federal Reserve and the European Central Bank," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 12(3), pages 141-163.
    9. Kinateder, Harald & Wagner, Niklas, 2017. "Quantitative easing and the pricing of EMU sovereign debt," The Quarterly Review of Economics and Finance, Elsevier, vol. 66(C), pages 1-12.
    10. Kenourgios, Dimitris & Papadamou, Stephanos & Dimitriou, Dimitrios, 2015. "Intraday exchange rate volatility transmissions across QE announcements," Finance Research Letters, Elsevier, vol. 14(C), pages 128-134.
    11. Carlos Garriga & Aaron Hedlund, 2019. "Crises in the Housing Market: Causes, Consequences, and Policy Lessons," Working Papers 2019-33, Federal Reserve Bank of St. Louis.
    12. Masahiko Shibamoto & Wataru Takahashi & Takashi Kamihigashi, 2023. "Japan’s monetary policy: a literature review and empirical assessment," Journal of Computational Social Science, Springer, vol. 6(2), pages 1215-1254, October.
    13. Alexander Berglund & Massimo Guidolin & Manuela Pedio, 2020. "Monetary policy after the crisis: A threat to hedge funds' alphas?," Journal of Asset Management, Palgrave Macmillan, vol. 21(3), pages 219-238, May.
    14. Arteta,Carlos & Kose,Ayhan & Stocker,Marc & Taskin,Temel, 2016. "Negative interest rate policies : sources and implications," Policy Research Working Paper Series 7791, The World Bank.
    15. Neuenkirch, Matthias & Nöckel, Matthias, 2018. "The risk-taking channel of monetary policy transmission in the euro area," Journal of Banking & Finance, Elsevier, vol. 93(C), pages 71-91.
    16. Hanabusa, Kunihiro, 2017. "Japan’s quantitative monetary easing policy: Effect on the level and volatility of yield spreads," Journal of Asian Economics, Elsevier, vol. 53(C), pages 56-66.
    17. Philipp Hartman & Frank Smets, 2018. "The European Central Bank’s Monetary Policy during Its First 20 Years," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 49(2 (Fall)), pages 1-146.
    18. Skrypnik, D., 2014. "The Spillover Effects of Quantitative Easing in the United States for Russian Economy. Macroeconometric Analysis," Journal of the New Economic Association, New Economic Association, vol. 22(2), pages 74-101.
    19. Jan Willem van den End, 2014. "The breakdown of the money multiplier at the zero lower bound," Applied Economics Letters, Taylor & Francis Journals, vol. 21(13), pages 875-877, September.
    20. Salvatore Perdichizzi & Matteo Cotugno & Giuseppe Torluccio, 2022. "Is the ECB’s conventional monetary policy state‐dependent? An event study approach," Manchester School, University of Manchester, vol. 90(2), pages 213-236, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rau:journl:v:11:y:2016:i:4:p:60-70. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alex Tabusca (email available below). General contact details of provider: https://edirc.repec.org/data/ferauro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.