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Financial Crisis in Norway and Japan

Author

Listed:
  • Miyagawa, Shigeyoshi

    (Department of Economics, Kyoto Gakuen University)

  • Morita, Yoji

    (Department of Economics, Kyoto Gakuen University)

Abstract

Three Nordic countries, Norway, Finland and Sweden, and Japan had experienced the severe financial crisis after the rapid asset price increase in almost the same period. However the recovery was fast in Nordic countries, while Japan experienced a prolonged recession, so called lost two decades. This study explains the difference and similarity of two crises, comparing the factors behind the bubble and bust in Norway and Japan. The paper also focuses on the role of monetary policy in both countries. Miyagawa and Morita (2012, 2013) statistically analyzed the important role of money in the up and down swing of economy in the Japan’s economy. They had taken the role of expectation in the money demand. The same VAR model was performed to the Norwegian crisis, taking into consideration the financial anxieties in the period of financial boom and crisis. The estimation results showed that money played the important role in the bubble and bust in Norway as in Japan.

Suggested Citation

  • Miyagawa, Shigeyoshi & Morita, Yoji, 2014. "Financial Crisis in Norway and Japan," Working Papers in Economics 05/14, University of Bergen, Department of Economics.
    • Handle: RePEc:hhs:bergec:2014_005
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    References listed on IDEAS

    as
    1. Bernanke, Ben S. & Gertler, Mark & Gilchrist, Simon, 1999. "The financial accelerator in a quantitative business cycle framework," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 21, pages 1341-1393, Elsevier.
    2. Yosuke Shigemi, 1995. "Asset Inflation in Selected Countries," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 13(2), pages 89-130, December.
    3. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Is the 2007 US Sub-Prime Financial Crisis So Different?: An International Historical Comparison," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 56(3), pages 291-299.
    4. Steigum, E.Jr., 1992. "Financial Deregulation, Credit Boom and Banking Crisis: The Case of Norway," Papers 15-92, Norwegian School of Economics and Business Administration-.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    deregulation; monetary easing; bubble; financial anxieties;
    All these keywords.

    JEL classification:

    • F30 - International Economics - - International Finance - - - General

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