Is Japan Special? Monetary Linkages and Price Stability

Susanne Lohmann
Additional contact information
Susanne Lohmann: UCLA

Monetary and Economic Studies, 1997, vol. 15, issue 2, 63-79

Abstract: Empirical studies of central bank independence and inflation identify Japan as an outlier. By standard measures, the Bank of Japan is one of the least independent central banks in the world, and yet Japan enjoys some of the lowest inflation rates. This paper develops a model of monetary link; ages with implications for the institutional course stability. The model explains why price stability in the "old" Japan-- with its powerful bureaucracy and single-party rule--did not necessarily rely on monetary institutions. It predicts that the "new" Japan, in which power is shifting from the bureaucracy to elected politicians who compete with each other in the political marketplace, must make use of monetary institutions to achieve price stability.

JEL-codes: E31 E32 E58 (search for similar items in EconPapers)
Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.imes.boj.or.jp/research/papers/english/me15-2-3.pdf (application/pdf)

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:ime:imemes:v:15:y:1997:i:2:p:63-79

Access Statistics for this article

More articles in Monetary and Economic Studies from Institute for Monetary and Economic Studies, Bank of Japan Contact information at EDIRC.
Bibliographic data for series maintained by Kinken ().