The Morning after: Explaining the Slowdown in Japanese Growth in the 1990s
By Tamim A. Bayoumi. Social Science Research Network, 2001
225 citations recorded by the source corpus.
This paper uses a VAR to investigate four possible explanations of the extended slump in Japanese economic activity over the 1990s: the absence of bold and consistent fiscal stimulus; the limited room for expansionary monetary policy due to a liquidity trap; overinvestment and debt overhang; and disruption of financial intermediation. The results indicate that all of these factors played a role, but that the major explanation is disruption in financial intermediation, largely operating through the impact of changes in domestic asset prices on bank lending.
Subfields: Education, Sociology and Political Science
View Paper: https://www.semanticscholar.org/paper/864e4233f8d64b20d7bf5995715efec364aee230
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In Education
In Sociology and Political Science
Citations in the corpus
- The 1990s in Japan: A Lost Decade (2002, unknown): “1 Kwon (1998) and Bayoumi (1999), using VAR analysis, concluded that fluctuations in asset prices affected output through bank lending. Ogawa and Suzuki (1998) find evidence from panel data on large Japanese firms that the price of land as collateral affected investment demand. Sasaki (2000) reports”
- The Great Recession: Lessons for Macroeconomic Policy from Japan (2001, result): “…needed to reconcile our results on the sizable effects of fiscal policy in Japan with the findings (using very different econometric approaches) of Bayoumi (2001) and Perri (1999) that fiscal policy had the expected sign but very small effects, and of Ramaswamy and Rendu (2000) that “public…”