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

The Case of Japan

Dados Bibliográficos

ID9705498
AutoresYuzo Honda (0000-0002-8337-1549, The University of Osaka), Yoshihiro Kuroki (Chuo University)
Ano2006
Volume116
Fascículo513
Páginas812-842
Data de publicação2006-07-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoThe Economic Journal (JOURNAL)
Identificadores do periódicoISSN: 0013-0133 • E-ISSN: 1468-0297
EditoraOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2006.01113.x
OpenAlexW2085484424
IdiomaEN
Citações recebidas4
Referências 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
Citações por ano0,27
Intervalo de citações2011 - 2026 (16)
Velocidade de citaçãocurrent
Altamente citadoNão
Tipos de citaçãoNeutras: 4
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