IDEAS home Printed from https://ideas.repec.org/p/fip/fedfap/87-10.html
   My bibliography  Save this paper

Monetary "targeting" in Japan and the U.S.: which is more accurate?

Author

Listed:
  • Michael M. Hutchison
  • John P. Judd

Abstract

This paper examines the issue of whether differences in money targeting or base-drift procedures between Japan and the U.S. are significant contributing factors to Japan's superior macroeconomic performance over the last decade, and concludes that these procedures probably are not important factors. ; We compare Bank of Japan (BoJ) money growth projections with Federal Reserve money targets. We show that BoJ projections are not comparable to annual money targets set by the Fed. We construct from past Records of Policy Actions of Federal Open Market Committee meetings a data set of Fed quarterly money growth projections, which is comparable to BoJ money projections. Projection errors for money growth in Japan are only slightly smaller than for the U.S. Moreover, BoJ procedures effectively allow full base drift each quarter, while the Fed in most instances has allowed base drift only once per year.

Suggested Citation

  • Michael M. Hutchison & John P. Judd, 1987. "Monetary "targeting" in Japan and the U.S.: which is more accurate?," Working Papers in Applied Economic Theory 87-10, Federal Reserve Bank of San Francisco.
  • Handle: RePEc:fip:fedfap:87-10
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below 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.

    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:fip:fedfap:87-10. 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: (Federal Reserve Bank of San Francisco Research Library). General contact details of provider: http://edirc.repec.org/data/frbsfus.html .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.