Ideal and Real Japanese Monetary Policy: A Comparative Analysis of Actual and Optimal Policy Measures

Kiyotaka Nakashima ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper discusses the successes and failures of Japanese monetary policy by evaluating policies from January 1980 to May 2003 in the light of optimal policy rules. First, we quantitatively conceptualize the Bank of Japan (BOJ)'s policy decisions by employing Bernanke and Mihov's (1998) econometric methodology for developing monetary-policy measures, and term the resulting policy measure the `actual policy measure'. Next, assuming that the BOJ is committed to optimal policy rules, we simulate optimal policy paths, which we term `optimal policy measures'. We evaluate Japanese monetary policy historically by comparing actual and optimal policy measures.

Keywords: Japanese Monetary Policy; Structural VAR; Low-interest Rate Policy. (search for similar items in EconPapers)
JEL-codes: C32 E52 E58 (search for similar items in EconPapers)
Date: 2006-05-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in The Japanese Economic Review 3.59(2008): pp. 345-369

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/70688/1/MPRA_paper_70688.pdf original version (application/pdf)

Related works:
Journal Article: IDEAL AND REAL JAPANESE MONETARY POLICY: A COMPARATIVE ANALYSIS OF ACTUAL AND OPTIMAL POLICY MEASURES* (2008)
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:pra:mprapa:70688

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().