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Finding stability in a time of prolonged crisis: Unconventional policy rules for Japan

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  • McNelis, Paul D.
  • Yoshino, Naoyuki

Abstract

This paper develops and estimates a dynamic stochastic general equilibrium (DSGE) model representing several key characteristics of Japan, namely, a large open economy, with large fiscal deficits and increasing amounts of debt held by domestic residents, through recurring sets of adverse shocks to productivity and positive shocks to government spending.

Suggested Citation

  • McNelis, Paul D. & Yoshino, Naoyuki, 2016. "Finding stability in a time of prolonged crisis: Unconventional policy rules for Japan," Journal of Financial Stability, Elsevier, vol. 27(C), pages 122-136.
    • Handle: RePEc:eee:finsta:v:27:y:2016:i:c:p:122-136
    DOI: 10.1016/j.jfs.2016.11.002
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    Cited by:

    1. Naoyuki Yoshino & Sahoko Kaji, 2020. "The Macroeconomic Effects of Fintech," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 16(4), pages 1-19, August.
    2. George N. Apostolakis & Nikolaos Giannellis & Athanasios P. Papadopoulos, 2023. "Macro‐financial effects of monetary policy easing," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 42(3), pages 715-738, April.
    3. Basu, Parantap & Wada, Kenji, 2023. "Unconventional monetary policy and the bond market in Japan: A new Keynesian perspective," Japan and the World Economy, Elsevier, vol. 67(C).
    4. Parantap Basu & Kenji Wada, 2018. "Unconventional Monetary Policy and the Bond Market in Japan: A New-Keynesian Perspective," IMES Discussion Paper Series 18-E-12, Institute for Monetary and Economic Studies, Bank of Japan.

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    More about this item

    Keywords

    Optimal simple rules; Debt and deficit targets; Quantitative easing policies; Tax-rate rules;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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