
The Effects of Monetary Policy Shocks in Japan
- 배근호(Gunho Bae)
- 한국자료분석학회
- Journal of The Korean Data Analysis Society (JKDAS)
- Vol.9 No.6
- 등재여부 : KCI등재
- 2007.12
- 2657 - 2664 (8 pages)
This study examined the role of interbank market rates in the conduct of Japanese monetary policy and the effects of monetary policy shocks in Japan. This issue is whether monetary policy innovations in Japan are better represented by shocks in an interest rate or in money. A typical result for Japanese data is that the Bank of Japan uses the interbank market rate as its operating target rather than total reserves. I found that the call money rate(CMR) innovations are a better indicator of policy stance than the money innovations (M2+CDs) in Japan. This stated that the interbank interest rate continues to be the primary operating instrument of the Bank of Japan despite primary major institutional changes in Japanese financial markets over the past decade.
1. Introduction
2. Model Specification
3. Results
4. Concluding remarks
References