IDEAS home Printed from https://ideas.repec.org/a/esj/esriea/171c.html
   My bibliography  Save this article

Explainig the Change in the Money Multiplier (in Japanese)

Author

Listed:
  • Yasuyuki Iida
  • Yutaka Harada
  • Koichi Hamada

Abstract

The Japanese government's monetary policies do not to seem to have been effective in eradicating deflation and increasing the money supply. A decrease in the money multiplier is said to be one reason for this. This paper will explain why the money multiplier declined in the 1990s, using decompositions and VAR models. We obtained the following conclusions. First, the decrease of the money multiplier in the 1990s was explained by the propensity of households to hold cash. Second, the expected inflation rate had a significant influence on the money multiplier both in the 1990s and 1980s. Third, the amount of bad loans also had a significant influence in 1990s. That influence, however, could be quantitatively negligible.

Suggested Citation

  • Yasuyuki Iida & Yutaka Harada & Koichi Hamada, 2003. "Explainig the Change in the Money Multiplier (in Japanese)," Economic Analysis, Economic and Social Research Institute (ESRI), vol. 171, pages 49-65, December.
    • Handle: RePEc:esj:esriea:171c
    as

    Download full text from publisher

    File URL: http://www.esri.go.jp/jp/archive/bun/bun171/bun171d.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    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:esj:esriea:171c. 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: HORI nobuko (email available below). General contact details of provider: https://edirc.repec.org/data/esrgvjp.html .

    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.