TY  - JOUR
AU  - Bayoumi,Tamim
TI  - The Morning After:  Explaining the Slowdown in Japanese Growth in the 1990s
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7350
PY  - 1999
Y2  - September 1999
UR  - http://www.nber.org/papers/w7350
L1  - http://www.nber.org/papers/w7350.pdf
N1  - Author contact info:
Tamim Bayoumi
International Monetary Fund
700 19th Street NW
Washington, DC 20431
E-Mail: tbayoumi@imf.org
AB  - This paper uses a VAR to investigate four possible explanations of the extended slump in Japanese economic activity over the 1990s: the absence of bold and consistent fiscal stimulus; the limited room for expansionary monetary policy due to a liquidity trap; overinvestment and debt overhang; and disruption of financial intermediation. The results indicate that all of these factors played a role, but that the major explanation is disruption in financial intermediation, largely operating through the impact of changes in domestic asset prices on bank lending.
ER  -