Member access

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Bank of Japan : (Research Paper) Impact of Macroprudential Policy Measures on Economic Dynamics

02/20/2013 | 02:28am US/Eastern

: Simulation Using a Financial Macro-econometric Model

February 20, 2013
Hiroshi Kawata*
Yoshiyuki Kurachi**
Koji Nakamura***
Yuki Teranishi****


This paper uses a financial macro-econometric model to compare and analyze the impact of macroprudential policy measures -- a credit growth restriction, loan-to-value and debt-to-income regulations, and a time-varying capital requirement -- on the economic dynamics through the financial cycle with the asset price bubble. Our analysis shows that although these macroprudential policy measures dampen economic volatility, it is possible that they reduce average economic growth, and the effects on the economic dynamics differ widely among macroprudential policy measures. In addition, the policy effects are changed dramatically by lags in recognizing the state of the economy. Our results also suggest that macroprudential policy measures can help contribute to more stable financial intermediation by raising the resilience of the financial system against risks.

In the course of writing this paper, we benefited from valuable comments offered by participants at seminars held by the ECB, BOE, IMF, FRB, and OFR and in the Research Institute for Economics and Business Administration - Kobe University workshop, and by Bank of Japan staff. We would like to express our deep appreciation for the comments. Any errors in this paper are naturally those of the authors. The views expressed here are those of the authors and should not be ascribed to the Bank of Japan or its Financial System and Bank Examination Department.

* Financial System and Bank Examination Department
E-mail :
** Financial System and Bank Examination Department
E-mail :
*** Financial System and Bank Examination Department
E-mail :
**** Financial System and Bank Examination Department
E-mail :

Papers in the Bank of Japan Working Paper Series are circulated in order to stimulate discussion and comments. Views expressed are those of authors and do not necessarily reflect those of the Bank.
If you have any comment or question on the working paper series, please contact each author.
When making a copy or reproduction of the content for commercial purposes, please contact the Public Relations Department ( at the Bank in advance to request permission. When making a copy or reproduction, the source, Bank of Japan Working Paper Series, should explicitly be credited.

distributed by
React to this article
Latest news
Date Title
11:54a FORD MOTOR : recalls nearly 423K cars, SUVs; power steering can fail while they're being driven
11:54a INVESTOR ALERT : Levi & Korsinsky, LLP Notifies Shareholders of PMFG, Inc. of Commencement of a Class Action Lawsuit Regarding the Fairness of the Sale of the Company to CECO Environmental Corp. -- PMFG
11:54a ZAGG Inc to Present at LD Micro Invitational Conference
11:53a FTSE rises on acquisition activity and hopes for Greek deal
11:53a COPSYNC INC : COPsync to Present at the Fourth Annual SeeThruEquity Microcap Investor Conference
11:52a GeoInvesting Releases Research Report Refuting Vipshop Fraud Allegations
11:52a BOMBARDIER : Appoints New Vice President, Operations Strategy
11:51a EXXON MOBIL : Amid lower oil prices, Exxon shareholders listen to CEO, vote on climate and fracking measures
11:51a RIGHTMOVE : Transaction in Own Shares
11:51a RESEARCH AND MARKETS : Market Overview of the Money Remittance Market in Southeast Asia (SEA) 2015-2018
Latest news
Hot News 
SYNERGY HEALTHCARE : Form 8.5 (EPT/RI) - Synergy Health plc
MERU NETWORKS : Fortinet Announces Agreement to Acquire Meru Networks
MICHAEL KORS : Announces Fourth Quarter and Annual Fiscal 2015 Results
TIFFANY : Reports First Quarter Results; Management Maintains Full Year Earnings Outlook
DJI : Price Monitoring Extension
Most Read News
05/26DJSINGAPORE AIRLINES : Flight to Shanghai on Saturday Temporarily Lost Engine Power, Landed Safely
02:10a PLUS500 : AGM Trading Update and Statement
05/26DJGRAIN HIGHLIGHTS : Top Stories Of The Day
05/26 CTBC FINANCIAL : bank will acquire of 100% stake in CITIC Bank International (China) Limited for HK$ equivalent of CNY 2.353 billion in cash.
05/26 Air Canada to redeploy capital as pension funding gap evaporates
Most recommended articles
11:44aDJBOND REPORT : Treasury Market Sells Off As Stocks Recover
11:38a Tiffany's sales, profit beat on higher tourist spending in Europe
11:30a ECB halts emergency funding hike to Greek banks, outflows pick up
11:29a Euro off lows, stocks rise on tentative Greek debt accord
11:27a EU's Dombrovskis says Greece, lenders not yet drafting agreement