Specification and Analysis of a Monetary Policy Rule for Japan

Bennett McCallum

No 4449, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper investigates the performance, in several small-scale models of the Japanese economy, of an operational monetary policy rule related to ones previously considered for the United States. The rule dictates settings of the monetary base that are designed to produce values of nominal GNP close to targets that grow smoothly at a noninflationary rate. Simulations with quarterly data for the period 1972-1992 yield predominantly favorable results. Experiments with an interest rate instrument are also conducted but the simulated performance is less desirable. One section discusses issues concerning monetary base control in Japan.

JEL-codes: E30 E58 (search for similar items in EconPapers)
Date: 1993-09
Note: EFG ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (47)

Published as Bank of Japan Monetary and Economic Studies, vol. 1, no. 2, November 1993p. 1-45

Downloads: (external link)
http://www.nber.org/papers/w4449.pdf (application/pdf)

Related works:
Journal Article: Specification and Analysis of a Monetary Policy Rule for Japan (1993)
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:nbr:nberwo:4449

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w4449

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().