The Monetary Transmission Mechanism in Japan

RESEARCH - With voices at the Bank of Japan and Ministry of Finance suggesting that more radical monetary policy tools are used to counter Japan's current deflationary spiral and recession this IMF paper looks at how monetary shocks impact on the Japanese economy.

IMF Staff Papers, Volume 48, Number 1, A Peek Inside the Black Box: The Monetary Transmission Mechanism in Japan By James Morsink and Tamim Bayoumi, December 2001.

Abstract: This paper uses vector autoregressions to examine the monetary

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