How Macroeconomic Shocks Impact the Japanese Economy: Evidence from the stock market
Willem Thorbecke
Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)
Abstract:
Many shocks have buffeted the Japanese economy since 2012. This paper investigates how macroeconomic variables affect Japanese sectoral stock prices. The results indicate that changes in global demand and in the yen/dollar exchange rate are paramount. They impact all 86 sectors examined and often produce large swings in the aggregate stock market. By contrast shocks to monetary policy and interest rates only affect about ten of the 86 sectors, and their impact is concentrated on the financial sector. Given the importance of global factors, Japan should redouble efforts to promote freer trade and to help its firms discover new markets when access to U.S. markets is restricted. It should also nurture domestic growth engines.
Pages: 39 pages
Date: 2025-09
New Economics Papers: this item is included in nep-fdg and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/25e084.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:eti:dpaper:25084
Access Statistics for this paper
More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().