Theoretical and Applied Economics
No. 1 / 2021 (626), Spring
Pre- and post- analysis of Bank of Japan’s policy implementation of negative interest rates
Texas Tech University, USA
Abstract. This paper analyzes the effect of Bank of Japan’s implementation of negative interest rate policy on various macroeconomic indicators – the Nikkei Stock, unemployment rate, foreign exchange rate, gross domestic product (GDP), and inflation rate – in a pre-and-post analysis. The implementation of negative interest rates was in response to conventional monetary policy having little to no effect after the financial crisis of 2008. The Bank of Japan was not the first central bank to implement negative interest rates; however, it is only one of six central banks to do so. For this reason, literature in unconventional monetary policy, specifically negative interest rates, is limited. In this paper, we find evidence that movements in the Nikkei 225 Stock, the exchange rate, unemployment, and GDP coincide with movements expected under conventional monetary policy. We also find evidence of statistically significant impact on GDP and unemployment. However, we could not find evidence it had an effect on the inflation rate. Overall, this paper finds that the unconventional monetary policy of negative interest rates followed similar movements as that of conventional monetary policy.
Contents
How do immigration impact unemployment and economic prosperity? An extensive investigation from the OECD nations
Influences and spatial effects on subjective well-being
Pre- and post- analysis of Bank of Japan’s policy implementation of negative interest rates
Using of KPIs and Dashboard in the analysis of Nike company's performance management
Economic policy uncertainty and adaptability in international capital markets
Is the creation of major objectives in the European Union an objective that may constitute a challenge for the Member States of the European Union?
Romania’s coal-fired power plants efficiency and pollution in the context of the European green deal
Equilibrium in a Stackelberg duopoly
Energy and economic growth. An empirical analysis
Fiscal competition and public expenditure composition in the era of globalization: Panel data analysis
Empirics of technology and unemployment in advanced countries
Capital account liberalisation in India: Volatility of capital flows and selective policy issues
Health, health production and input financing: A theoretical note
The response of monetary policy to the COVID-19 pandemic in Turkey. The path of a credit-based economic recovery
The co-integration and causal relationship between saving and economic growth in India
Does exchange rate volatility affect financial depth? Evidence from BRICS countries
Debt-financed public investment in developing countries: Does the efficiency of public investment matter?
Dynamic connection between macroeconomic variables and sectoral stock returns: Evidence from India
A pragmatic evaluation of the interconnection between currency futures return volatility, open interest and volume
Fiscal policy and growth-inequality tradeoffs: Bayesian evidence from Cote d’Ivoire
My colleague is corrupt: Information disclosure to control corruption