Japanese monetary policy and international spillovers. (April 2015)

• Record Type: Journal Article
• Authors: Dekle, Robert; Hamada, Koichi
• Is Part Of: Journal of international money and finance. Volume 52(2015)
• Page Start: 175
• Page End: 199
• Publication Date: 2015-04
• Subjects: Monetary spillovers -- VARs -- GVAR -- U.S.-Japan Economic Relations; International finance -- Periodicals; Foreign exchange -- Periodicals; Finances internationales -- Périodiques; Change -- Périodiques; Foreign exchange; International finance; Periodicals; 332.04205
• DOI: 10.1016/j.jimonfin.2014.11.018
• Languages: English
• ISSNs: 0261-5606

Abstract

Abstract: We present a simple monetary model (with sticky prices) to highlight spillovers to output gaps. We then show using a sequence of nonstructural VARs and a Global VAR, the effects of monetary policies measured using short-term interest rates and money base stocks. We conclude that money base expansions in particular have generally positive output effects both within and across borders. Highlights: We show the relationship between international monetary spillovers, inflation, and output gaps. We run VARs to show the effects of short-term interest rates and monetary base shocks. Monetary base expansions have positive output and inflation effects both within and across borders.