Japan's Lost Decade: Does Money have a Role?
AbstractWe study the contribution of the stock of money to the macroeconomic outcomes of the 1990s in Japan using a small scale structural model. Likelihood-based estimates of the parameters are provided and time stabilities of the structural relationships analyzed. Real balances are statistically important for output and inflation fluctuations and their role has changed over time. Models which give money no role give a distorted representation of the sources of cyclical fluctuations. The severe stagnation and the long deflation are driven by different causes.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7608.
Date of creation: Dec 2009
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Other versions of this item:
- Canova, Fabio & Menz, Tobias, 2010. "Japan's Lost decade: Does money have a role?," Journal of the Japanese and International Economies, Elsevier, vol. 24(2), pages 178-195, June.
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-12-19 (All new papers)
- NEP-CBA-2009-12-19 (Central Banking)
- NEP-FDG-2009-12-19 (Financial Development & Growth)
- NEP-MAC-2009-12-19 (Macroeconomics)
- NEP-MON-2009-12-19 (Monetary Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- R. Anton Braun & Yuichiro Waki, 2005.
"Monetary Policy during Japan's Lost Decade,"
CARF-F-035, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
- Jordi Galí, 2008.
"Introduction to Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework
[Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Ke," Introductory Chapters, Princeton University Press.
- Takatoshi Ito & Frederic S. Mishkin, 2006.
"Two Decades of Japanese Monetary Policy and the Deflation Problem,"
in: Monetary Policy with Very Low Inflation in the Pacific Rim, NBER-EASE, Volume 15, pages 131-202
National Bureau of Economic Research, Inc.
- Takatoshi Ito & Frederic S. Mishkin, 2004. "Two Decades of Japanese Monetary Policy and the Deflation Problem," NBER Working Papers 10878, National Bureau of Economic Research, Inc.
- Yongsung Chang & Taeyoung Doh & Frank Schorfheide, 2006.
"Non-stationary hours in a DSGE model,"
06-3, Federal Reserve Bank of Philadelphia.
- Inoue, Tomoo & Okimoto, Tatsuyoshi, 2008. "Were there structural breaks in the effects of Japanese monetary policy? Re-evaluating policy effects of the lost decade," Journal of the Japanese and International Economies, Elsevier, vol. 22(3), pages 320-342, September.
- Kenn Ariga & Fumio Hayashi & Charles Horioka, 2006. "Introduction," The Japanese Economic Review, Japanese Economic Association, vol. 57(2), pages 157-160.
- Gauti B. Eggertsson & Michael Woodford, 2003. "The Zero Bound on Interest Rates and Optimal Monetary Policy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 34(1), pages 139-235.
- Diego A. Comin, 2008.
"An Exploration of the Japanese Slowdown during the 1990s,"
NBER Working Papers
14509, National Bureau of Economic Research, Inc.
- Diego A. Comin, 2008. "An Exploration of the Japanese Slowdown during the 1990s," Harvard Business School Working Papers 09-065, Harvard Business School.
- Fabio Canova, 2009.
"What Explains The Great Moderation in the U.S.? A Structural Analysis,"
Journal of the European Economic Association,
MIT Press, vol. 7(4), pages 697-721, 06.
- Fabio Canova, 2004. "What explains the Great Moderation in the US? A structural analysis," Economics Working Papers 919, Department of Economics and Business, Universitat Pompeu Fabra, revised Dec 2007.
- Evans, Charles L., 1992.
"Productivity shocks and real business cycles,"
Journal of Monetary Economics,
Elsevier, vol. 29(2), pages 191-208, April.
- Nakashima, Kiyotaka & Saito, Makoto, 2012. "On the comparison of alternative specifications for money demand: The case of extremely low interest rate regimes in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 26(3), pages 454-471.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.