The Effectiveness of the Negative Interest Rate Policy in Japan
JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
The Effectiveness of the Negative Interest Rate Policy in Japan
Yoshino, Naoyuki | Taghizadeh-Hesary, Farhad | Miyamoto, Hiroaki
Credit and Capital Markets – Kredit und Kapital, Vol. 50 (2017), Iss. 2 : pp. 189–212
15 Citations (CrossRef)
Additional Information
Article Details
Author Details
Dr. Naoyuki Yoshino, Dean, Asian Development Bank Institute (ADBI), Professor Emeritus, Keio University, Tokyo, Japan
Dr. Farhad Taghizadeh-Hesary, Assistant Professor, Keio University, Tokyo, Japan and Visiting Professor, Graduate School of Economics, The University of Tokyo
Dr. Hiroaki Miyamoto, Project Associate Professor, Graduate School of Public Policy, The University of Tokyo and Visiting Professor, College of Business, Rikkyo University
Cited By
-
Analyzing the factors influencing the demand and supply of solar modules in Japan – Does financing matter
Taghizadeh-Hesary, Farhad | Yoshino, Naoyuki | Inagaki, Yugo | Morgan, Peter J.International Review of Economics & Finance, Vol. 74 (2021), Iss. P.1
https://doi.org/10.1016/j.iref.2021.01.012 [Citations: 27] -
Dealing with an aging China—Delaying retirement or the second-child policy?
Ling, Yantao | Song, Zhe | Yu, Yang | Jiang, Tangyang | Xue, BingPLOS ONE, Vol. 16 (2021), Iss. 1 P.e0242252
https://doi.org/10.1371/journal.pone.0242252 [Citations: 14] -
The impact of monetary and tax policy on income inequality in Japan
Taghizadeh‐Hesary, Farhad | Yoshino, Naoyuki | Shimizu, SayokoThe World Economy, Vol. 43 (2020), Iss. 10 P.2600
https://doi.org/10.1111/twec.12782 [Citations: 22] -
Do house prices play a role in unconventional monetary policy transmission in Japan?
Renzhi, Nuobu
Journal of Asian Economics, Vol. 83 (2022), Iss. P.101547
https://doi.org/10.1016/j.asieco.2022.101547 [Citations: 3] -
Niedrigzinspolitik und Sparkultur in Japan: Implikationen für die Wirtschaftspolitik
Schnabl, Gunther | Sepp, TimORDO, Vol. 72-73 (2023), Iss. 1 P.392
https://doi.org/10.1515/ordo-2023-2001 [Citations: 0] -
A Trendy Approach to UK Inflation Dynamics1
Forbes, Kristin | Kirkham, Lewis | Theodoridis, KonstantinosThe Manchester School, Vol. 89 (2021), Iss. S1 P.23
https://doi.org/10.1111/manc.12293 [Citations: 4] -
A Trendy Approach to UK Inflation Dynamics
Forbes, Kristin J. | Kirkham, Lewis | Theodoridis, KonstantinosSSRN Electronic Journal , Vol. (2018), Iss.
https://doi.org/10.2139/ssrn.3112827 [Citations: 1] -
The intervention of strategic innovation practices in between regulations and sustainable business growth: a holistic perspective for Malaysian SMEs
Islam, Ariful | Wahab, Sazali AbdWorld Journal of Entrepreneurship, Management and Sustainable Development, Vol. ahead-of-print (2021), Iss. ahead-of-print
https://doi.org/10.1108/WJEMSD-04-2020-0035 [Citations: 11] -
Japan’s Lost Decade
Optimal Fiscal Policy Rule for Achieving Fiscal Sustainability: A Japanese Case Study
Yoshino, Naoyuki | Mizoguchi, Tetsuro | Taghizadeh-Hesary, Farhad2017
https://doi.org/10.1007/978-981-10-5021-3_3 [Citations: 0] -
The Japanese Banks in the Lasting Low-, Zero- and Negative-Interest Rate Environment
Murai, Taiki | Schnabl, GuntherCredit and Capital Markets – Kredit und Kapital, Vol. 54 (2021), Iss. 1 P.1
https://doi.org/10.3790/ccm.54.1.1 [Citations: 2] -
The unconventional monetary policy of the Bank of Japan during the period 2013–2018: comments and views on Shirai
Kinugawa, Megumu
International Journal of Economic Policy Studies, Vol. 13 (2019), Iss. 2 P.347
https://doi.org/10.1007/s42495-019-00018-w [Citations: 2] -
How to escape from the debt trap: Lessons from the past
Mayer, Thomas | Schnabl, GuntherThe World Economy, Vol. 46 (2023), Iss. 4 P.991
https://doi.org/10.1111/twec.13382 [Citations: 2] -
Unconventional monetary policy and income disparity in an aging society
Taghizadeh-Hesary, Farhad | Yoshino, Naoyuki | Rasoulinezhad, EhsanJournal of Economic Policy Reform, Vol. 25 (2022), Iss. 4 P.451
https://doi.org/10.1080/17487870.2021.1968860 [Citations: 4] -
Japan’s Lost Decade
The Ineffectiveness of Japan’s Negative Interest Rate Policy
Yoshino, Naoyuki | Taghizadeh-Hesary, Farhad | Miyamoto, Hiroaki2017
https://doi.org/10.1007/978-981-10-5021-3_8 [Citations: 0] -
Effectiveness of monetary policy under the high and low economic uncertainty states: evidence from the major Asian economies
Balcilar, Mehmet | Ozdemir, Zeynel Abidin | Ozdemir, Huseyin | Aygun, Gurcan | Wohar, Mark E.Empirical Economics, Vol. 63 (2022), Iss. 4 P.1741
https://doi.org/10.1007/s00181-021-02198-x [Citations: 5]
Abstract
In April 2013, the Bank of Japan (BOJ), in order to overcome deflation and achieve sustainable economic growth, introduced an inflation target of 2 %. However due to the lower oil prices in the global market, this target could not be achieved for a long-term period. In Feb 2016, the BOJ took further steps, and started a negative interest rate policy, by increasing massive money supply through purchasing long-term Japanese government bonds (JGB). Previously the BOJ only purchased short-term government bonds. This policy has flattened the yield curve of JGBs. Banks started to reduce purchasing government bonds, because the yield of short-term government bonds" became negative, and even for long-term government bonds up to 15 years the interest rates became negative. On the other hand, bank loans to the corporate sector did not grow, due to the vertical investment-saving (IS) curve in the Japanese economy. This paper discusses that first, in the low oil price era, the BOJ has to modify the inflation target of 2 % and reduce it, secondly it argues that the role of monetary policy and the negative interest rate policy in Japan cannot recover from the current recession and deflation situation for the long term. What is important is to make the IS curve downward sloping rather than vertical. That means the rate of return on investment must be positive and companies must be willing to invest if interest rates were set too low. The recession in Japan is coming from structural problems that cannot be solved by the current monetary policy. The last section reports a simulation results of tackling aging population of Japan by introducing productivity based wage rate and postpone retirement age will help the recovery of Japanese economy.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Naoyuki Yoshino / Farhad Taghizadeh-Hesary / Hiroaki Miyamoto: The Effectiveness of the Negative Interest Rate Policy in Japan | 1 |