Impact of the Kuroda Bazooka on Japanese households’ borrowing intentions

Hiroshi Gunji

Japan and the World Economy, 2024, vol. 69, issue C

Abstract: This study examines the impact of a monetary policy by the Bank of Japan on households’ willingness to borrow, that was announced on October 31, 2014. This policy, known as Kuroda Bazooka, was not anticipated by the private sector; therefore, it could be regarded as an exogenous shock. To estimate the effects of the Kuroda Bazooka, this study used 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 intentions by approximately 10 %. This result suggests that although there was not much change in households’ aggregate borrowing, there was a change in their intention to borrow. Therefore, a monetary policy that merely changes expectations may not be effective.

Keywords: Kuroda Bazooka; Haruhiko Kuroda; Households’ willingness to borrow; Bank of Japan (search for similar items in EconPapers)
JEL-codes: E52 E58 G51 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0922142524000033
Full text for ScienceDirect subscribers only

Related works:
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:eee:japwor:v:69:y:2024:i:c:s0922142524000033

DOI: 10.1016/j.japwor.2024.101240

Access Statistics for this article

Japan and the World Economy is currently edited by Robert Dekle and Yasushi Hamao

More articles in Japan and the World Economy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().