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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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  1. Lucía Cuadro-Sáez & Alicia García-Herrero, 2007. "Finance for Growth: Does a Balanced Financial Structure Matter?," Kiel Advanced Studies Working Papers 445, Kiel Institute for the World Economy.
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