05592oam 22012254 450 991081244770332120240402051839.01-4623-8401-31-4527-8234-21-282-84433-497866128443311-4518-7379-4(CKB)3170000000055376(SSID)ssj0000942133(PQKBManifestationID)11474021(PQKBTitleCode)TC0000942133(PQKBWorkID)10972273(PQKB)11052144(OCoLC)680613602(MiAaPQ)EBC1608856(IMF)WPIEE2009232(EXLCZ)99317000000005537620020129d2009 uf 0engurcn|||||||||txtccrMonetary Policy and the Lost Decade : Lessons from Japan /Daniel Leigh1st ed.Washington, D.C. :International Monetary Fund,2009.33 p. illIMF Working Papers"October 2009."1-4519-1797-X Intro -- Contents -- I. Introduction -- II. Empirical Analysis -- A. Model Specification -- B. Model Estimation -- III. Counterfactual Analysis -- IV. Conclusion -- Tables -- 1. Estimation Results -- 2. Actual and Counterfactual Inflation and Output Loss -- Figures -- 1. The Japanese Economy Since 1990 -- 2. Estimation Results: Implicit Inflation Target -- 3. Estimation Results: Natural Rate of Interest -- 4. Estimated Policy-Rate Target and Actual Policy Rate -- 5. Autocorrelation Functions -- 6. Demand and Supply Shocks: 1990-2005 -- 7. Actual and Counterfactual Macroeconomic Dynamics: -- 8. Actual and Counterfactual Macroeconomic Dynamics: -- 9. Actual and Counterfactual Macroeconomic Dynamics: -- 10. Actual and Counterfactual Macroeconomic Dynamics: -- Appendix -- References.This paper investigates how monetary policy can help ward off a protracted deflationary slump when policy rates are near the zero bound by studying the experience of Japan during the "Lost Decade" which followed the asset-price bubble collapse in the early 1990s. Estimation results based on a structural model suggest that the Bank of Japan's interest-rate policy fits a conventional forward-looking reaction function with an inflation target of about 1 percent. The disappointing economic performance thus seems primarily due to a series of adverse economic shocks rather than an extraordinary policy error. In addition, counterfactual policy simulations based on the estimated structural model suggest that simply raising the inflation target would not have yielded a lasting improvement in performance. However, a price-targeting rule or a policy rule that combined a higher inflation target with a more aggressive response to output would have achieved superior stabilization results.IMF Working Papers; Working Paper ;No. 2009/232Monetary policyJapanEconometric modelsDeflation (Finance)JapanEconometric modelsAnti-inflationary policiesJapanEconometric modelsBanks and BankingimfInflationimfMoney and Monetary PolicyimfProduction and Operations ManagementimfMonetary PolicyimfPrice LevelimfDeflationimfMacroeconomics: ProductionimfInterest Rates: Determination, Term Structure, and EffectsimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfMonetary economicsimfMacroeconomicsimfBankingimfInflation targetingimfOutput gapimfCentral bank policy rateimfMonetary policyimfPricesimfProductionimfEconomic theoryimfInterest ratesimfBanks and bankingimfJapanEconomic conditions1989-JapanEconomic policy1989-JapanimfMonetary policyEconometric models.Deflation (Finance)Econometric models.Anti-inflationary policiesEconometric models.Banks and BankingInflationMoney and Monetary PolicyProduction and Operations ManagementMonetary PolicyPrice LevelDeflationMacroeconomics: ProductionInterest Rates: Determination, Term Structure, and EffectsBanksDepository InstitutionsMicro Finance InstitutionsMortgagesMonetary economicsMacroeconomicsBankingInflation targetingOutput gapCentral bank policy rateMonetary policyPricesProductionEconomic theoryInterest ratesBanks and banking339.5;339.530952Leigh Daniel1603511International Monetary Fund.Research Dept.DcWaIMFBOOK9910812447703321Monetary Policy and the Lost Decade4017615UNINA