Details
| Originalsprache | Englisch |
|---|---|
| Seiten (von - bis) | 267-282 |
| Seitenumfang | 16 |
| Fachzeitschrift | German economic review |
| Jahrgang | 18 |
| Ausgabenummer | 3 |
| Publikationsstatus | Veröffentlicht - 1 Aug. 2017 |
Abstract
Japan has been in a benign liquidity trap since the 1990s. In a benign liquidity trap, interest rates approach zero and monetary policy is ineffective but output and employment perform decently. Such a pattern contradicts traditional macro theories. This paper introduces a monetary general equilibrium model that is compatible with Japan's performance and resolves puzzles associated with liquidity traps. Possible conclusions for Anglo-Saxon countries and eurozone members are also discussed.
ASJC Scopus Sachgebiete
- Volkswirtschaftslehre, Ökonometrie und Finanzen (insg.)
- Volkswirtschaftslehre und Ökonometrie
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in: German economic review, Jahrgang 18, Nr. 3, 01.08.2017, S. 267-282.
Publikation: Beitrag in Fachzeitschrift › Artikel › Forschung › Peer-Review
}
TY - JOUR
T1 - Understanding Benign Liquidity Traps
T2 - The Case of Japan
AU - Homburg, Stefan
PY - 2017/8/1
Y1 - 2017/8/1
N2 - Japan has been in a benign liquidity trap since the 1990s. In a benign liquidity trap, interest rates approach zero and monetary policy is ineffective but output and employment perform decently. Such a pattern contradicts traditional macro theories. This paper introduces a monetary general equilibrium model that is compatible with Japan's performance and resolves puzzles associated with liquidity traps. Possible conclusions for Anglo-Saxon countries and eurozone members are also discussed.
AB - Japan has been in a benign liquidity trap since the 1990s. In a benign liquidity trap, interest rates approach zero and monetary policy is ineffective but output and employment perform decently. Such a pattern contradicts traditional macro theories. This paper introduces a monetary general equilibrium model that is compatible with Japan's performance and resolves puzzles associated with liquidity traps. Possible conclusions for Anglo-Saxon countries and eurozone members are also discussed.
KW - dynamic general equilibrium
KW - forward guidance
KW - interest rate determination
KW - Japan
KW - Liquidity trap
KW - monetary policy
KW - quantitative easing
KW - secular stagnation
UR - http://www.scopus.com/inward/record.url?scp=84971299739&partnerID=8YFLogxK
U2 - 10.1111/geer.12105
DO - 10.1111/geer.12105
M3 - Article
AN - SCOPUS:84971299739
VL - 18
SP - 267
EP - 282
JO - German economic review
JF - German economic review
SN - 1465-6485
IS - 3
ER -