Monetary Policy in Japan, Germany and the United States: Does One Size Fit All?
We study the post-war evidence for Japan to see if the same specification for both the economy and the monetary policy rule is useful for understanding Japan's economy and monetary policy. A recurrent theme in the literature on Japanese monetary policy is that there are significant differences in both the policy procedures and objectives as compared to other industrial countries. In this paper we propose an out of sample' test of a set of restrictions on a vector autoregression employed by Clarida and Gertler (1997) in their analysis of the Bundesbank's behavior. Our interpretation of the evidence is that, with minor adjustments, the same specification provides a useful framework for understanding monetary policy in Japan. Perhaps the most interesting finding is that the Bank of Japan appears to react to inflation over longer forecast horizons as compared to other central banks.
|Date of creation:||Jul 1997|
|Date of revision:|
|Publication status:||published as Japanese Economic Policy Reconsidered, Freedman, Craig, ed.: Edward Elgar, 1998, pp. 179-217.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bennett T. McCallum, 1993.
"Specification and Analysis of a Monetary Policy Rule for Japan,"
NBER Working Papers
4449, National Bureau of Economic Research, Inc.
- Bennett T. McCallum, 1993. "Specification and Analysis of a Monetary Policy Rule for Japan," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 11(2), pages 1-45, December.
- Dominguez, K.M.E., 1997. "Monetary Interdependence and Coordination," Working Papers 408, Research Seminar in International Economics, University of Michigan.
- Pierce, James L, 1984. "Did Financial Innovation Hurt the Great Monetarist Experiment?," American Economic Review, American Economic Association, vol. 74(2), pages 392-96, May.
- Kenneth Kasa & Helen Popper, 1995.
"Monetary policy in Japan: a structural VAR analysis,"
Pacific Basin Working Paper Series
95-12, Federal Reserve Bank of San Francisco.
- Kasa, Ken & Popper, Helen, 1997. "Monetary Policy in Japan: A Structural VAR Analysis," Journal of the Japanese and International Economies, Elsevier, vol. 11(3), pages 275-295, September.
- Menzie Chinn & Michael Dooley, 1995. "Asia-Pacific Capital Markets: Measurement of Integration and the Implications for Economic Activity," NBER Working Papers 5280, National Bureau of Economic Research, Inc.
- Clarida, R. & Gertler, M., 1996.
"How the Bundesbank Conducts Monetary Policy,"
96-14, C.V. Starr Center for Applied Economics, New York University.
- Reuven Glick & Michael Hutchison, 1993.
"Monetary policy, intervention, and exchange rates in Japan,"
Pacific Basin Working Paper Series
93-07, Federal Reserve Bank of San Francisco.
- Reuven Glick & Michael M. Hutchison, 1992. "Monetary policy, intervention, and exchange rates in Japan," Proceedings, Federal Reserve Bank of San Francisco, pages 225-257.
- Reuven Glick & Michael M. Hutchison, 1992. "Monetary policy, intervention, and exchange rates in Japan," Proceedings, Federal Reserve Bank of San Francisco, issue Sep.
- Carl E. Walsh, 1993. "What caused the 1990-1991 recession?," Economic Review, Federal Reserve Bank of San Francisco, pages 33-48.
- Ben S. Bernanke & Ilian Mihov, 1995.
"Measuring monetary policy,"
Working Papers in Applied Economic Theory
95-09, Federal Reserve Bank of San Francisco.
- Taylor, John B., 1993. "Discretion versus policy rules in practice," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 39(1), pages 195-214, December.
- Jordi Galí, 1992. "How Well Does The IS-LM Model Fit Postwar U. S. Data?," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 709-738.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:6092. 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: ()
If references are entirely missing, you can add them using this form.