The Morning After: Explaining the Slowdown in Japanese Growth in the 1990s

Tamim Bayoumi

No 7350, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper uses a VAR to investigate four possible explanations of the extended slump in Japanese economic activity over the 1990s: the absence of bold and consistent fiscal stimulus; the limited room for expansionary monetary policy due to a liquidity trap; overinvestment and debt overhang; and disruption of financial intermediation. The results indicate that all of these factors played a role, but that the major explanation is disruption in financial intermediation, largely operating through the impact of changes in domestic asset prices on bank lending.

JEL-codes: E32 E44 (search for similar items in EconPapers)
Date: 1999-09
New Economics Papers: this item is included in nep-his
Note: EFG IFM
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Citations: View citations in EconPapers (9)

Published as Bayoumi, Tamim. "The Morning After: Explaining The Slowdown In Japanese Growth In The 1990s," Journal of International Economics, 2001, v53(2,Apr), 241-259.

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Journal Article: The morning after: explaining the slowdown in Japanese growth in the 1990s (2001)
Working Paper: The Morning After: Explaining The Slowdown In Japanese Growth In The 1990s (2000)
Working Paper: The Morning After: Explaining the Slowdown in Japanese Growth in the 1990's (1999)
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