Work

Macroeconomic Effects of Quantitative and Qualitative Monetary Easing Measures

Year: 2018

Type: article

Abstract: We estimate a structural vector autoregressive model with an effective lower bound (ELB) using Japanese macroeconomic and financial data from the mid-90s to the end of 2016. The estimated results show that the Bank of Japan’s quantitative and qualitative easing (QQE) policy increased output via “pure” quantitative easing when the first-year’s QQE level effect was controlled, complemented by qualitative easing. Our nonlinear counter-factual analyses show that raising the ELB or lowering an inflation threshold in forward guidance is not necessarily contractionary.

Source: Journal of the Japanese and International Economies

DOI: 10.1016/j.jjie.2018.12.006

Author: Junko Koeda

Institution: Waseda University

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,970

Funder: Japan Society for the Promotion of Science