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Bank of Japan's Quantitative and Credit Easing: Are they Now More Effective

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  • Mr. Ugo Fasano-Filho
  • Mr. Qing Wang
  • Pelin Berkmen

Abstract

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.

Suggested Citation

  • Mr. Ugo Fasano-Filho & Mr. Qing Wang & Pelin Berkmen, 2012. "Bank of Japan's Quantitative and Credit Easing: Are they Now More Effective," IMF Working Papers 2012/002, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2012/002
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Filipa Lima & Sonia Mota, 2017. "Unconventional monetary policy - is there a call for unconventional statistics?," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Statistical implications of the new financial landscape, volume 43, Bank for International Settlements.
    2. 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.
    3. Mamatzakis, Emmanuel & Matousek, Roman & Vu, Anh Nguyet, 2016. "What is the impact of bankrupt and restructured loans on Japanese bank efficiency?," Journal of Banking & Finance, Elsevier, vol. 72(S), pages 187-202.
    4. Chun-Hung Kuo & Hiroaki Miyamoto, 2016. "Quantitative Easing and the Labor Market in Japan," Working Papers EMS_2016_02, Research Institute, International University of Japan.
    5. An, Sungbae & Kim, Hyosang & Kim, Seung-Hyun & Yang, Da Young & Lee, Jinhee & Cho, Ko Un & Kim, Wongi & Kim, Jinill, 2021. "포스트 코로나 시대 주요국의 통화·재정정책 방향과 시사점(hanges, Challenges and Implications of Fiscal and Monetary Policy Directions in the Post Pandemic Era)," Policy Analyses 21-15, Korea Institute for International Economic Policy.
    6. Jakub Janus, 2013. "Wpływ doświadczeń Banku Japonii na politykę pieniężną Systemu Rezerwy Federalnej w latach 2007-2011," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1-2, pages 71-90.
    7. Mosler, Warren & Silipo, Damiano B., 2017. "Maximizing price stability in a monetary economy," Journal of Policy Modeling, Elsevier, vol. 39(2), pages 272-289.
    8. Wang, Yi-Chen & Wang, Ching-Wen & Huang, Chia-Hsing, 2015. "The impact of unconventional monetary policy on the tail risks of stock markets between U.S. and Japan," International Review of Financial Analysis, Elsevier, vol. 41(C), pages 41-51.
    9. Yiping Huang & Peichu Xie & Jiao Wang, 2014. "International Transmission of the People's Bank of China's Balance Sheet Expansion," Asian Economic Policy Review, Japan Center for Economic Research, vol. 9(2), pages 276-296, July.
    10. Francisco Ilabaca, 2018. "Measuring the Effects of US Unconventional Monetary Policy on International Financial Markets," 2018 Meeting Papers 861, Society for Economic Dynamics.

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