Towards the end of deflation in Japan ? - Archive ouverte HAL Access content directly
Journal Articles Revue de l'OFCE Year : 2014

Towards the end of deflation in Japan ?


In this paper, I investigate the Bank of Japan's monetary policy effects under Abenomics at the initial stage. First, I describe briefly what is “Abenomics” and “New monetary policy under Abenomics” since April 2013. I also examine the causes of the sharp response of the yen and Japanese stock prices, the increase of consumer price index and the change of the public's expectations for economic activity and prices on surveys. In the second part I explain why the new monetary policy was effective in 2013, comparing the previous policy until 2012. Although there is not so big difference between monetary policies before and after 2012 theoretically, I point out the importance of the strong commitment by central bank, the cooperation with the government and “psychological impact” on public. The third part discusses the durability of the new monetary policy. The policy effects will be sustainable if a price becomes lastingly positive, which needs a durably positive output gap. Therefore, growth strategy by Abenomics plays an important role. I also point out that the BOJ has to perform the policy over side effects such as the impact on the government bond markets, the impact on other financial market and an outflow of money to overseas.
Fichier principal
Vignette du fichier
04-2014-uchida-towards-the-end-of-deflation-in-japan.pdf (341.34 Ko) Télécharger le fichier
Origin : Publisher files allowed on an open archive

Dates and versions

hal-03627437 , version 1 (01-04-2022)


Attribution - NonCommercial - NoDerivatives - CC BY 4.0



Mahito Uchida. Towards the end of deflation in Japan ?: Monetary policy under abenomics and the role of the central bank. Revue de l'OFCE, 2014, 135, pp.243 - 268. ⟨10.3917/reof.135.0243⟩. ⟨hal-03627437⟩
30 View
11 Download



Gmail Facebook Twitter LinkedIn More