Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    Unavailable
    Does Excess Liquidity Pose a Threat in Japan?
    Unavailable
    Does Excess Liquidity Pose a Threat in Japan?
    Unavailable
    Does Excess Liquidity Pose a Threat in Japan?
    Ebook45 pages24 minutes

    Does Excess Liquidity Pose a Threat in Japan?

    By Gauti Eggertsson

    ()

    Currently unavailable

    Currently unavailable

    About this ebook

    This paper examines the effects of quantitative easing implemented by the Bank of Japan (BoJ) since early 2001, looking specifically at the impact on inflation expectations and real asset prices. It suggests a number of possible channels through which quantitative easing may have exerted influence, and reviews some of the empirical evidence linking open market operations and long-term bond purchases to real yields and other asset prices. It argues that quantitative easing has had smaller effects on nominal and real variables than desired, mainly because the BoJ has not succeeded in credibly communicating its policy intentions once the zero bound on short-term rates ceases to be binding. It argues that setting clear goals for inflation and a return to interest rate targeting are not only key elements of a successful strategy to avoid deflation, but are also essential to pin down expectations and avoid instability once deflation wanes.

    LanguageEnglish
    PublisherINTERNATIONAL MONETARY FUND
    Release dateApr 1, 2005
    ISBN9781452713007
    Unavailable
    Does Excess Liquidity Pose a Threat in Japan?

    Related to Does Excess Liquidity Pose a Threat in Japan?

    Related ebooks

    Business For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      I Wish I Knew What Yield Curve Control Was, But I’m Too Embarrassed To Ask

      Mar 5, 2021

      In the wake of the 2008 financial crisis, interest rates across the developed world were cut to near 0%. As a result, the world’s central banks have been forced to experiment with ever more radical monetary policies, from negative interest rates to q

      1 min read

    • Article

      A Surgical Cut

      Mar 19, 2020

      The author is chief researcher of Bank of China On March 9, all three major U.S. stock indexes tumbled more than 7 percent. A key market circuit breaker was triggered for the first time since the 2008 global financial crisis, with $3-trillion market

      4 min read

    • Article

      Cash Injection Boosts The Real Economy

      Jul 22, 2021

      The cash amount that should be reserved for Chinese financial institutions, or the reserve requirement ratio (RRR), was lowered by 50 basis points starting July 15, excluding those that have already held the ratio at a low level of 5 percent. The mea

      4 min read

    • Article

      I Wish I Knew What Yield Curve Control Was, But I’m Too Embarrassed To Ask

      Jan 6, 2023

      In the wake of the 2008 financial crisis, interest rates across the developed world were cut to near 0%. As a result, the world’s central banks were forced to experiment with ever more radical monetary policies, from negative interest rates to quanti

      1 min read

    • Article

      Hong Kong Needs To Consider Introducing Sales Tax To Plug Financing Gaps, Removing US Dollar Peg

      Jan 20, 2024

      The Hong Kong economy probably grew by just over 3 per cent in 2023. Considering that it shrank by 3.5 per cent in 2022, growth last year hardly made up for the contraction the year before. The economy today is not much bigger than it was at the end

      5 min read

    • Article

      Is There A Way Out Of The Economic Doldrums?

      Dec 6, 2019

      The objective of this article is to offer some policy recommendations aimed at addressing the urgent near-term economic concerns and the significant challenges facing Lebanon. It also highlights the main elements of a medium-term economic reform prog

      7 min read

    • Article

      There Will Be Inflation Ahead

      Jan 27, 2022

      THIS YEAR SEES THE 25th anniversary of the Bank of England’s operational independence, made effective in May 1997 and granted formally in a 1998 Act. Almost certainly, 2022 will also see the most above-target inflation numbers since that change. The

      3 min read

    • Article

      Interest Rates are Rising – What This Means for Your Bank Account

      Apr 16, 2022

      The Federal Reserve in mid-March announced that for the first time in three years, they’re moving interest rates up by a quarter of a percent (0.25%). While this was an expected move, it’s still going to cause some changes to the financial landscape

      2 min read

    • Article

      Shinzo Abe: Abenomics Not Seen As The Answer For China's Economic Woes With Reform Favoured Over Stimulus

      Jul 12, 2022

      China should concentrate on structural reform to unleash long-term growth potential, rather than resorting to the monetary stimulus favoured by the Abenomics approach adopted by the late former Japanese prime minister, analysts said. Shinzo Abe's thr

      3 min read

    • Article

      QE: Too Much Of A Good Thing

      Jul 23, 2021

      When the developed world’s central banks resorted to quantitative easing (QE) after the 2008 global financial crisis, most of us were shocked. While QE was not entirely new, the idea of central banks printing money at scale to buy government bonds se

      2 min read

    • Article

      The Experimental Economy

      Jul 20, 2021

      WE HAVE ALL BECOME POLICY EXPERIMENTALISTS in the new era ushered in by the 2008-09 global financial crisis and the COVID-19 pandemic. Whereas central banks were once considered uniquely well-equipped to restart the economic engine after a recession

      1 min read

    • Article

      Fantasy Of The Magic Money Tree

      Mar 25, 2021

      “THERE IS NO SUCH thing as a free lunch.” Or so Milton Friedman assured us in the title of a 1975 collection of his newspaper articles. However, economies are complicated mechanisms and Friedman’s dictum is not entirely true. The state has the undoub

      3 min read

    • Article

      Deciphering the RRR Cut

      Jan 16, 2020

      When the People’s Bank of China (PBC), China’s central bank, cut commercial banks’ reserve requirement ratio (RRR) by 0.5 percentage point on January 6, a move expected to unleash 800 billion yuan ($115 billion) in the market, many read it as a sign

      3 min read

    • Article

      Stock Market Today: Dow Dives 1,008 Points as Powell Speech Rattles Markets

      Aug 26, 2022

      Stocks took a plunge Friday as a favorable reading on inflation did little to offset the hawkish tone struck by Fed Chair Jerome Powell in a much-anticipated speech. Ahead of the opening bell, data from the Commerce Department showed that the persona

      2 min read

    • Article

      Stay Above the Interest Rate Fray

      Aug 26, 2021

      Fixed-income veterans remember the 2013 "taper tantrum," when bond prices plunged after the Federal Reserve said it would scale back a massive bond-buying program. This year, we are having the tantrum in reverse, a bond-buying binge that means bulls

      2 min read

    • Article

      The Quantitative Easing Pandemic

      Nov 5, 2021

      during the 2008/2009 global financial crisis, the US Federal Reserve responded with a combination of ultra-low interest rates and quantitative easing, the latter of which involved purchasing securities from the market, typically in the form of newly-

      3 min read

    • Article

      Stimulus Must End Sometime

      Oct 22, 2021

      financial markets are currently totally occupied by reserve banks wanting to reduce asset purchases. But what does it in fact mean, and why are the markets so nervous in this regard? Let’s first look at the history and pause fora moment at the concep

      3 min read

    • Article

      Why Did the Fed Cut Rates to Near Zero?

      Mar 16, 2020

      The Federal Reserve on Sunday announced a steep cut to short-term interest rates, as well as a commitment to buying several hundred billion dollars of longer-term debt to lower long-term rates as well. Cutting rates to near zero and launching a so-ca

      2 min read

    Reviews for Does Excess Liquidity Pose a Threat in Japan?

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words