EconPapers    
Economics at your fingertips  
 

The effectiveness of quantitative easing: Evidence from Japan

Roman Matousek, Stephanos Papadamou (), Aleksandar Šević and Nickolaos Tzeremes

Journal of International Money and Finance, 2019, vol. 99, issue C

Abstract: This study contributes to current research on quantitative easing. We provide a novel analysis of the quantitative easing effectiveness as an unconventional monetary policy tool in Japan over the last two decades. The paper advances current research on quantitative easing by exploring quantitative easing through the prism of the monetary transmission mechanism. We examine the response of Japanese Regional Banks to the quantitative easing operations conducted by the Bank of Japan from the early 2000s till 2015. The analysis is performed within the framework of the bank lending channel under the unconventional monetary policy strategies. We find that small-sized regional banks underline the significant positive effect of quantitative easing on gross domestic product and inflation that works through the securities holdings and leverage preferences. Monetary authorities should pay particular attention to policies for such banks and banks with a high level of non-performing loans. Deposit growth after a quantitative easing shock is only present in large-sized banks with low NPLs holdings.

Keywords: Quantitative easing; Financial institutions; NPLs; Panel VAR; Japan (search for similar items in EconPapers)
JEL-codes: G1 G21 G28 E52 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0261560618306806
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:jimfin:v:99:y:2019:i:c:s0261560618306806

DOI: 10.1016/j.jimonfin.2019.102068

Access Statistics for this article

Journal of International Money and Finance is currently edited by J. R. Lothian

More articles in Journal of International Money and Finance from Elsevier
Bibliographic data for series maintained by Nithya Sathishkumar ().

 
Page updated 2021-04-18
Handle: RePEc:eee:jimfin:v:99:y:2019:i:c:s0261560618306806