IDEAS home Printed from https://ideas.repec.org/a/cai/reofsp/reof_135_0243.html
   My bibliography  Save this article

Towards the end of deflation in Japan?. Monetary policy under Abenomics and the role of the central bank

Author

Listed:
  • Mahito Uchida

Abstract

In this paper, I investigate the Bank of Japan?s monetary policy effects under Abenomics at the initial stage. First, I describe briefly what is ?Abenomics? and ?New monetary policy under Abenomics? since April 2013. I also examine the causes of the sharp response of the yen and Japanese stock prices, the increase of consumer price index and the change of the public?s expectations for economic activity and prices on surveys. In the second part I explain why the new monetary policy was effective in 2013, comparing the previous policy until 2012. Although there is not so big difference between monetary policies before and after 2012 theoretically, I point out the importance of the strong commitment by central bank, the cooperation with the government and ?psychological impact? on public. The third part discusses the durability of the new monetary policy. The policy effects will be sustainable if a price becomes lastingly positive, which needs a durably positive output gap. Therefore, growth strategy by Abenomics plays an important role. I also point out that the BOJ has to perform the policy over side effects such as the impact on the government bond markets, the impact on other financial market and an outflow of money to overseas.

Suggested Citation

  • Mahito Uchida, 2014. "Towards the end of deflation in Japan?. Monetary policy under Abenomics and the role of the central bank," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(4), pages 243-268.
    • Handle: RePEc:cai:reofsp:reof_135_0243
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=REOF_135_0243
    Download Restriction: free
    File URL: http://www.cairn.info/revue-de-l-ofce-2014-4-page-243.htm
    Download Restriction: free
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christophe Blot & Jérôme Creel & Paul Hubert & Fabien Labondance, 2015. "Que peut-on attendre de l’assouplissement quantitatif de la BCE ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(2), pages 265-290.
    2. Céline Antonin & Christophe Blot & Amel Falah & Sabine Le Bayon & Hervé Péléraux & Christine Rifflart & Xavier Timbeau & Catherine Mathieu & Mathieu Plane, 2014. "Le piège de la déflation," Post-Print hal-01093020, HAL.
    3. Céline Antonin & Christophe Blot & Amel Falah & Sabine Le Bayon & Hervé Péléraux & Christophe Blot & Christine Rifflart & Xavier Timbeau & Sabine Le Bayon & Catherine Mathieu & Mathieu Plane & Christi, 2014. "Le piège de la déflation: Perspectives économiques 2014-2015 pour l'économie mondiale," Sciences Po publications info:hdl:2441/3rkj9m8cf38, Sciences Po.
    4. repec:hal:spmain:info:hdl:2441/3rkj9m8cf38o9o48pft8q9gd65 is not listed on IDEAS
    5. repec:hal:spmain:info:hdl:2441/3t12lkolqm85v9rk22ov8gbimf is not listed on IDEAS

    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:cai:reofsp:reof_135_0243. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Jean-Baptiste de Vathaire (email available below). General contact details of provider: https://www.cairn.info/revue-de-l-ofce.htm .

    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.