European Parliament Library

Bank of Japan'S Monetary Easing Measures :, Are they Powerful and Comprehensive?, Waikei Lam

With policy rates near the zero bound, the Bank of Japan (BoJ) has introduced a series of unconventional monetary easing measures since late 2009 in response to lingering deflation and a weakening economy. These measures culminated in a new Asset Purchase Program under the Comprehensive Monetary Easing (CME) which differs from typical quantitative easing in other central banks by including purchases of risky asset in an effort to reduce term and risk premia. This note assesses the impact of monetary easing measures on financial markets using an event study approach. It finds that the BoJ's monetary easing measures has had a statistically significant impact on lowering bond yields and improving equity prices, but no notable impact on inflation expectations
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; 1. Recent Conduct of Monetary Policy Measures by the Bank of Japan; II. Quantitative Assessment; 1. Current Status of Asset Purchase Program under the CME; A. Event Study Methodology; 2. Event Classification of Bank of Japan Monetary Easing Measures; B. Impact on Financial Markets; 3a. Impact of the Bank of Japan's Monetary Easing Measures on Financial Markets (Two-Trading Day Window); 3b. Impact of the Bank of Japan's Monetary Easing Measures on Financial Markets (Weekly Window)
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (30 p.)
Specific Material Designation
Form Of Item

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