Monetary Policy under Zero Interest Rate: Viewpoints of Central Bank Economists
Kunio Okina and
Shigenori Shiratsuka ()
Additional contact information
Kunio Okina: Institute for Monetary & Econ Studies, Bank of Japan
Monetary and Economic Studies, 2001, vol. 19, issue 1, 89-130
Various proposals have been raised with respect to a desirable framework of monetary policy under the zero interest rate in Japan. By taking due account of such proposals, this paper intends to examine monetary policy options under the environment of the zero interest rate. In so doing, we first describe the policy framework of the "zero interest rate policy," which was in place from February 1999 to August 2000, and its transmission mechanism. Then, in view of the problems intrinsic to the zero interest rate, we address three important questions: (1) the policy options that might be available in response to future economic developments, (2) the major risks associated with these policy options; and (3) how such risks might change under varying economic conditions. On this basis, we finally consider the medium- and long-term "style" of monetary policy in Japan in order to improve its effectiveness and efficiency.
JEL-codes: E43 E58 E52 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ime:imemes:v:19:y:2001:i:1:p:89-130
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 ().