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The Effect of Easing Monetary Policy in Regional Lending Markets in Japan

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  • Nagano, Mamoru

Abstract

This paper investigates the factors that support a funding demand increase in regional economies under easing monetary conditions. The following results were empirically obtained on the basis of individual firms and the 47 regional data in the 2000s in Japan. The first result is that funding demand regionally increases where the relative size of private capital stock is large. This result suggests that industrial agglomeration complements easing monetary policy to induce regional funding demand. The second result is that regional banking soundness in lending markets also contributes to an increase in the funding demand. This suggests that another possible requirement of the money suppliers must be fulfilled to induce the regional funding demand.

Suggested Citation

  • Nagano, Mamoru, 2010. "The Effect of Easing Monetary Policy in Regional Lending Markets in Japan," MPRA Paper 25335, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:25335
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    References listed on IDEAS

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    More about this item

    Keywords

    Regional Policy; Regional Banking Market; Monetary Policy;
    All these keywords.

    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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