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Financial and Capital Markets’ Responses to Changes in the Central Bank’s Target Interest Rate

The Case of Japan

Datos Bibliográficos

ID9705498
AutoresYuzo Honda (0000-0002-8337-1549, The University of Osaka), Yoshihiro Kuroki (Chuo University)
Año2006
Volumen116
Número513
Páginas812-842
Fecha de publicación2006-07-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2006.01113.x
OpenAlexW2085484424
IdiomaEN
Citas recibidas4
Referencias citadas12

We propose new proxy variables for monetary policy shocks in Japan for the period from July 1989 to March 2001 and investigate the effects of changes in the policy target variable on stock prices and the term structure of interest rates. We find that changes in the surprise component of the target variable significantly affect both intermediate-term and long-term interest rates. A surprise decrease in the target rate of 1% leads, on average, to a 3% increase in stock prices. The magnitudes of estimated reactions of financial variables are similar in Japan and the US. Copyright 2006 The Authors. Journal compilation Royal Economic Society 2006

Ancient history · Business · Capital (architecture · Central bank · Economic history · Economics · Financial system · Interest rate · Monetary economics · Monetary policy · Political science · Economic Policies and Impacts · Finance · Global Financial Crisis and Policies · History · Monetary Policy and Economic Impact

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Obras citantes distintas4
Citas por año0,27
Intervalo de citas2011 - 2026 (16)
Velocidad de citacióncurrent
Altamente citadoNo
Tipos de citaNeutras: 4
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