Advanced Search
MyIDEAS: Login

Asymmetric Effects of Monetary Policy: Japanese Experience in the 1990s

Contents:

Author Info

  • Ryo Kato author-name Takashi Ui
  • Tsutomu Watanabe
Registered author(s):

Abstract

We consider a competitive bank loan market model where the marginal costs of managing and monitoring loans are assumed to increase as a borrower's net worth decreases. We show that the responsiveness of equilibrium bank loan rates to changes in interbank money market rates becomes weaker as a borrower's net worth decreases. In other words, monetary policy becomes less effective as a borrower's net worth decreases. We test and confirm this prediction by estimating bank loan rate equations using Japanese data. We find that the effectiveness of expansionary monetary policy in the 1990s has been significantly weakened by the deterioration of borrowers' balance sheets, contributing to the long stagnation of the Japanese economy during the period.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Paper provided by Institute of Economic Research, Hitotsubashi University in its series Discussion Paper Series with number a388.

as in new window
Length:
Date of creation: Feb 2000
Date of revision:
Handle: RePEc:hit:hituec:a388

Contact details of provider:
Postal: 2-1 Naka, Kunitachi City, Tokyo 186
Phone: +81-42-580-8327
Fax: +81-42-580-8333
Email:
Web page: http://www.ier.hit-u.ac.jp/
More information through EDIRC

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

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

Cited by:
  1. David ARISTEI & Manuela Gallo, 2012. "Interest Rate Pass-Through in the Euro Area during the Financial Crisis: a Multivariate Regime-Switching Approach," Quaderni del Dipartimento di Economia, Finanza e Statistica 107/2012, Università di Perugia, Dipartimento Economia, Finanza e Statistica.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:hit:hituec:a388. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hiromichi Miyake).

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.