Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The B.E. Journal of Macroeconomics

Editor-in-Chief: Cavalcanti, Tiago / Kambourov, Gueorgui

Ed. by Abraham, Arpad / Carceles-Poveda , Eva / Debortoli, Davide / Schwartzman, Felipe / Wang, Pengfei


IMPACT FACTOR 2018: 0.674

CiteScore 2018: 0.70

SCImago Journal Rank (SJR) 2018: 0.605
Source Normalized Impact per Paper (SNIP) 2018: 0.694

Online
ISSN
1935-1690
See all formats and pricing
More options …

Output Composition of the Monetary Policy Transmission Mechanism in Japan

Ippei Fujiwara
Published Online: 2004-09-09 | DOI: https://doi.org/10.2202/1534-5998.1178

In this paper, we investigate the output composition of the monetary policy transmission mechanism in Japan. The predominant channel through which monetary policy affects output in Japan is usually thought to be the investment channel, namely the process whereby a change in the interest rate alters the cost of capital and therefore investment. In the United States, however, the consumption channel, which works through intertemporal substitution, is commonly considered the more significant of the two. The aim of this paper is twofold: 1) based on analysis using VAR models to understand which of the two channels, the consumption channel or the investment channel, plays the more important role in the transmission of the Japanese monetary policy; and 2) to contribute to the research on what Angeloni, Kashyap, Mojon and Terlizzese (2003) term the "Output Composition Puzzle," referring to the fact that whereas in the United States the predominant driver of output changes is the consumption channel, in the Euro area it is the investment channel. Results obtained from the Japanese models imply that the investment channel is more important.

Keywords: VAR; Monetary Policy Transmission; Output Composition Puzzle

About the article

Published Online: 2004-09-09


Citation Information: Topics in Macroeconomics, Volume 4, Issue 1, ISSN (Online) 1534-5998, DOI: https://doi.org/10.2202/1534-5998.1178.

Export Citation

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston.Get Permission

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
Madhvi SETHI, Saina BABY, and Vandita DAR
The Journal of Asian Finance, Economics and Business, 2019, Volume 6, Number 3, Page 103
[3]
Tomas Havranek and Marek Rusnak
SSRN Electronic Journal, 2012
[4]
Marek Rusnák, Tomas Havranek, and Roman Horvath
SSRN Electronic Journal, 2011

Comments (0)

Please log in or register to comment.
Log in