EconPapers    
Economics at your fingertips  
 

Regional heterogeneity, the rise of public debt and monetary policy in post-bubble Japan: lessons for the EMU

Raphael Fischer () and Gunther Schnabl ()
Additional contact information
Raphael Fischer: Universität Leipzig

International Economics and Economic Policy, 2018, vol. 15, issue 2, No 8, 405-428

Abstract: Abstract Both Japan and parts of the European Monetary Union have experienced boom and bust in stock and real estate markets, which have been followed by a lasting crisis. The paper analyses the role of a high degree of regional heterogeneity for public debt and monetary policy in the context of crisis. It is shown for Japan that the attempts to maintain regional cohesion via a regional transfer mechanism has contributed to the unprecedented rise in public debt and persistent monetary expansion. Econometric estimations show that in Japan regional redistribution of funds has ensured homogeneous living conditions across Japanese regions pre- and post-crisis. The side condition is monetary expansion. A similar effect could emerge in Europe, if the crisis persists.

Keywords: Japan; EMU; Crisis; Regional redistribution; Monetary policy; Public debt; H2; H5; H7 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10368-017-0402-6 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Regional Heterogeneity, the Rise of Public Debt and Monetary Policy in Post-Bubble Japan: Lessons for the EMU (2016) Downloads
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:kap:iecepo:v:15:y:2018:i:2:d:10.1007_s10368-017-0402-6

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10368/PS2

DOI: 10.1007/s10368-017-0402-6

Access Statistics for this article

International Economics and Economic Policy is currently edited by Paul J.J. Welfens, Holger C. Wolf, Christian Pierdzioch and Christian Richter

More articles in International Economics and Economic Policy from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-06-10
Handle: RePEc:kap:iecepo:v:15:y:2018:i:2:d:10.1007_s10368-017-0402-6