 Bank of Japan'S Monetary Easing Measures: Are they Powerful and Comprehensive?Waikei Lam No 2011/264, IMF Working Papers from International Monetary Fund Abstract: With policy rates near the zero bound, the Bank of Japan (BoJ) has introduced a series of unconventional monetary easing measures since late 2009 in response to lingering deflation and a weakening economy. These measures culminated in a new Asset Purchase Program under the Comprehensive Monetary Easing (CME) which differs from typical quantitative easing in other central banks by including purchases of risky asset in an effort to reduce term and risk premia. This note assesses the impact of monetary easing measures on financial markets using an event study approach. It finds that the BoJ's monetary easing measures has had a statistically significant impact on lowering bond yields and improving equity prices, but no notable impact on inflation expectations. Keywords: WP; market; Asset purchase program; easing measure; yield; Monetary and Credit Easing; Quantitative Easing; Large-scale Asset Purchases; purchase program; commercial paper; BoJ's balance sheet; asset return; target asset level; market anticipation; BoJ's measure; Corporate bonds; Government securities; Sovereign bonds; Monetary aggregates; Stock markets; Global (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2011/264 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC. |
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