Monetary Factors and Inflation in Japan

Stefan Gerlach (), Katrin Assenmacher and Toshitaka Sekine

No 6650, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Recently, the Bank of Japan outlined a ?two perspectives? approach to the conduct of monetary policy that focuses on risks to price stability over different time horizons. Interpreting this as pertaining to different frequency bands, we use band spectrum regression to study the determination of inflation in Japan. We find that inflation is related to money growth and real output growth at low frequencies and the output gap at higher frequencies. Moreover, this relationship reflects Granger causality from money growth and the output gap to inflation in the relevant frequency bands.

Keywords: Frequency domain; Phillips curve; Quantity theory; Spectral regression (search for similar items in EconPapers)
JEL-codes: C22 E3 E5 (search for similar items in EconPapers)
Date: 2008-01
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
https://cepr.org/publications/DP6650 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Monetary factors and inflation in Japan (2008)
Working Paper: Monetary Factors and Inflation in Japan (2007)
Working Paper: Monetary factors and inflation in Japan (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:6650

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP6650

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().