Bank of Japan
Chuo-ku, Tokyo 103-8660
Institutional Affiliation: Bank of Japan
Information about this author at RePEc
NBER Working Papers and Publications
|March 2011||Global Liquidity Trap|
with Ippei Fujiwara, Tomoyuki Nakajima, Yuki Teranishi: w16867
In this paper we consider a two-country New Open Economy Macroeconomics model, and analyze the optimal monetary policy when countries cooperate in the face of a "global liquidity trap" - i.e., a situation where the two countries are simultaneously caught in liquidity traps. Compared to the closed economy case, a notable feature of the optimal policy in the face of a global liquidity trap is its international dependence. Whether or not a country's nominal interest rate is hitting the zero bound affects the target inflation rate of the other country. The direction of the effect depends on whether goods produced in the two countries are Edgeworth complements or substitutes. We also compare several classes of simple interest-rate rules. Our finding is that targeting the price level yields high...
Published: Fujiwara, Ippei & Nakajima, Tomoyuki & Sudo, Nao & Teranishi, Yuki, 2013. "Global liquidity trap," Journal of Monetary Economics, Elsevier, vol. 60(8), pages 936-949. citation courtesy of
|February 2011||The Effects of Oil Price Changes on the Industry-Level Production and Prices in the United States and Japan|
with Ichiro Fukunaga, Naohisa Hirakata
in Commodity Prices and Markets, Takatoshi Ito and Andrew K. Rose, editors
|March 2010||The Effects of Oil Price Changes on the Industry-Level Production and Prices in the U.S. and Japan|
with Ichiro Fukunaga, Naohisa Hirakata: w15791
In this paper, we decompose oil price changes into their component parts following Kilian (2009) and estimate the dynamic effects of each component on industry-level production and prices in the U.S. and Japan using identified VAR models. The way oil price changes affect each industry depends on what kind of underlying shock drives oil price changes as well as on industry characteristics. Unexpected disruptions of oil supply act mainly as negative supply shocks for oil-intensive industries and act mainly as negative demand shocks for less oil-intensive industries. For most industries in the U.S., shocks to the global demand for all industrial commodities act mainly as positive demand shocks, and demand shocks that are specific to the global oil market act mainly as negative supply shocks. ...