Member access

4-Traders Homepage  >  News

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****

Abstract

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 : hiroshi.kawata@boj.or.jp
** Financial System and Bank Examination Department
E-mail : yoshiyuki.kurachi@boj.or.jp
*** Financial System and Bank Examination Department
E-mail : kouji.nakamura@boj.or.jp
**** Financial System and Bank Examination Department
E-mail : yuuki.teranishi@boj.or.jp
Notice

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 (post.prd8@boj.or.jp) 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
09:37pDJPETROLEO BRASILEIRO PETROBRAS : Moody's Downgrades All Petrobras Ratings
09:36p DONACO : ASX:DNA) To Acquire Star Vegas Resort and Club
09:36p DONACO : ASX:DNA) Investor Presentation
09:35p Family Dollar CEO Howard Levine to sell 1M to 2M shares of company
09:35pDJSingapore December Bank Loans S$607.96 Billion Vs S$608.17 Billion in November
09:35p TRACON Pharmaceuticals Announces Pricing of Initial Public Offering
09:34p SQLI : Sanofi Pasteur MSD repense la stratégie d’information & de collaboration de son intranet
09:34p IOOF : Balance Investor Trust takes SuperRatings top spot
09:34p IDOX : Cheltenham embraces QR codes to promote public safety on licensed vehicles
09:34p AWS move, disclosure suggest Amazon yielding more to Wall Street
Latest news
Advertisement
Hot News 
GROUPE STERIA : Sopra Steria Group: Financial calendar 2015
NEXT FIFTEEN COMMUNICATIONS : Raises GBP4.3 Million, To Beat Expectations (ALLISS)
PERFORMANT FINANCIAL : Entry into a Material Definitive Agreement, Results of Operations and Financial Condition, Unregistered Sale of Equity Securities, Other Events, Financial Statements and Exhibits (form 8-K)
VENAXIS : Other Events, Financial Statements and Exhibits (form 8-K)
GEVO : Announces Pricing of Public Offering of Common Stock and Warrants
Most Read News
06:24p Wall Street finishes higher in afternoon rally as oil gains
07:48pDJCurrency Tumult Stokes Big Bets--Update
06:39p Cheaper gasoline helps Visa report better-than-expected profit
06:46pDJINTERCEPT PHARMACEUTICALS : Says FDA Grants Breakthrough Status
06:18p KINDER MORGAN : Taking on the pipeline; Residents plot course of action against Kinder Morgan
Most recommended articles
09:35pDJSingapore December Bank Loans S$607.96 Billion Vs S$608.17 Billion in November
09:34p AWS move, disclosure suggest Amazon yielding more to Wall Street
09:30pDJShake Shack Prices IPO Above Expectations
09:27pDJSingapore December M1 Money Supply S$160.23 Billion Vs S$161.22 Billion in November
09:20p Oil prices fall as output remains high, producers slash costs
Dynamic quotes  
ON
| OFF