Impact of the Kuroda Bazooka on Japanese households’ borrowing intentions
Year: 2024
Type: article
Abstract: This study examines the impact of the monetary easing policy announced by the Bank of Japan on October 31, 2014 on households’ willingness to borrow. This policy, known as the Kuroda Bazooka, was not anticipated by the private sector; therefore, it can be regarded as an exogenous shock. To estimate the effects of the Kuroda Bazooka, the study uses interrupted time-series analysis, a technique often used in medicine but not yet widely used in economics. The analysis of the data before and after the shock shows that the Kuroda Bazooka increased household borrowing intention by about 10%. This result suggests that even though there was not much actual change in households’ aggregated borrowing, there was a change in their intention to borrow. Thus, a monetary policy that merely changes expectations may not be effective.
Source: Japan and the World Economy
Author: Hiroshi Gunji
Institution: Daito Bunka University
Language: English
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $2,860
Awards: ゾンビ企業のマクロ的要因分析, 集約型都市構造に向けた民間誘導による地域拠点実現化の計画技術に関する研究, Examining Unconventional Monetary Policy through a Quasi-Experimental Design, A historical investigation of financial intermediation in Japan: Unit cost of financial intermediation and bank liquidity creation, Reexamining Conventional Monetary Policy: Theory, Meta-Analysis, and Causal Inference
OpenAlex ID: W4391878349