Series: IMF Working Papers
Author(s): Fei Han
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 15 February 2019
Keywords: Real interest rates, Negative interest rates, Interest rate policy, Economic growth, Interest rate increases, Demographic change;natural rate of interest;monetary policy;Japan;natural rate;Turunen;potential growth;Pescatori;real interest rate
Japan's aging and shrinking population could lower the natural rate of interest and, together with low inflation expectations, challenge the Bank of Japan's efforts to reflate the economy. This paper uses a semi-st...