Paper #216
- Title:
- Identifying monetary policy shocks in Japan
- Author:
- Etsuro Shioji
- Date:
- April 1997
- Abstract:
- It is sometimes argued that the central banks influence the private economy in the short run through controlling a specific component of high powered money, not its total amount. Using a structural VAR approach, this paper evaluates this claim empirically, in the context of the Japanese economy. I estimate a model based on the standard view that the central bank controls the total amount of high powered money, and another model based on the alternative view that it controls only a specific component. It is shown that the former yields much more sensible estimates than the latter.
- Keywords:
- Monetary policy, structural VAR, identification
- JEL codes:
- E52, E58, C32
- Area of Research:
- Macroeconomics and International Economics
- Published in:
- Journal of the Japanese and International Economies, Volume 14, Number 1, March 2000, pp. 22-42(21)
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