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The Impact of Policy Shocks on Financial Structure: Empirical Results from Japan

  • Moayedi, Vafa
  • Aminfard, Matin

This study examines the relationship between Japan’s financial structure and the country’s fiscal/monetary policy. Vector Error Correction models are utilized to investigate the effect of policy shocks on financial structure development during a sample period of 48 years. Our findings reveal signs of an existing long-run relationship between policy variables and financial structure. Policymakers in Japan may have effectively influenced Japan’s financial structure development via fiscal and monetary actions. This result strengthens the assumption of a volatile financial structure due to policy interference. This study is the first of its kind and is intended to stimulate further research and debate.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39185.

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Date of creation: 09 Dec 2011
Date of revision:
Handle: RePEc:pra:mprapa:39185
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  10. Blank, Sven & Dovern, Jonas, 2009. "What macroeconomic shocks affect the German banking system? Analysis in an integrated micro-macro model," Discussion Paper Series 2: Banking and Financial Studies 2009,15, Deutsche Bundesbank, Research Centre.
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  15. Levine, Ross, 1996. "Financial development and economic growth : views and agenda," Policy Research Working Paper Series 1678, The World Bank.
  16. Federico Guerrero & Elliott Parker, 2010. "The Effect of Government Purchases on Economic Growth in Japan," Working Papers 10-004, University of Nevada, Reno, Department of Economics;University of Nevada, Reno , Department of Resource Economics.
  17. Veronika Dolar & Césaire Meh, 2002. "Financial Structure and Economic Growth: A Non-Technical Survey," Staff Working Papers 02-24, Bank of Canada.
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