Cover IMF Working Papers
Bank of Japan'S Monetary Easing Measures: Are they Powerful and Comprehensive?
Author:
Mr. Waikei R Lam
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Series:
IMF Working Papers
Volume/Issue:
Volume 2011: Issue 264
Language:
English
Publication Date:
01 Nov 2011
DOI:
https://doi.org/10.5089/9781463924638.001
ISBN:
9781463924638
ISSN:
1018-5941
Pages:
18
Keywords:
WP; market; Asset purchase program; easing measure; yield; Monetary and Credit Easing; Quantitative Easing; Large-scale Asset Purchases; purchase program; commercial paper; BoJ's balance sheet; asset return; target asset level; market anticipation; BoJ's measure; Corporate bonds; Government securities; Sovereign bonds; Monetary aggregates; Stock markets; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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With policy rates near the zero bound, the Bank of Japan (BoJ) has introduced a series of unconventional monetary easing measures since late 2009 in response to lingering deflation and a weakening economy. These measures culminated in a new Asset Purchase Program under the Comprehensive Monetary Easing (CME) which differs from typical quantitative easing in other central banks by including purchases of risky asset in an effort to reduce term and risk premia. This note assesses the impact of monetary easing measures on financial markets using an event study approach. It finds that the BoJ's monetary easing measures has had a statistically significant impact on lowering bond yields and improving equity prices, but no notable impact on inflation expectations.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2011: Issue 264