ID 4112
FullText File
Authors
DOI
Journal Title
The Wakayama economic review
ISSN
04516222
NCID
AN00071425
Volume
400
Start Page
47
End Page
62
Published Date
2020-03-01
Language
eng
Docuemnt Type
論文
Keywords
流動性トラップ
金融政策
金融市場
Keywords Alternative
Liquidity Trap
Monetary Policy
FinancialMarkets
Abstract Alternative
This study examines the prevailing conditions of low inflation and liquidity trap that characterize major advanced economies. Despite the strong commitment to unconventional monetary policies and provision of ample liquidity through zerointerest rate policies and quantitative easing, there is a clear failure by central bankers to achieve the two-percent inflation targets. This paper discusses the dynamics of inflation rates and real economic growth, and considers the theoretical arguments about the liquidity trap. It focuses on the expansionary monetary policies adopted by the Bank of Japan in its extensive attempts to shape inflation expectations, and address the long-term effects of the balance-sheet recessions. Thus, it can be argued that the focus on liquidity trap and monetary easing may be misplaced, as the central issue relates to debt accumulation, leveraging, moral hazards, misalignment of incentives, and misallocation of resources rather than the dynamics of the yield curve. It is perhaps the risk-sharing relations rather than risk-transfer relations based on interest rates, that is more conducive to financial stability and more efficient allocation of risk in the society.
Content Type
Departmental Bulletin Paper
Text Version
publisher