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
12:12a 361 DEGREES : Monthly Returns - Monthly Return of Equity Issuer on Movement in Securities for the Month Ended 30 April 2015
12:12a ENCOUNTER RESOURCES : Drilling Commenced - BM7 Copper & Millennium Zinc
12:10a Valence Industries 50% Increase in Uley Graphite Resource
12:10a VALENCE : ASX:VXL) 50% Increase in Uley Graphite Resource
12:07a HOLON : Gilboa/Galil seals relegation fate with Holon loss; Herzliya upsets Jerusalem
12:07a HEWLETT PACKARD : Republican field grows with 2 more presidential bids
12:07a OMNIVISION TECHNOLOGIES : Consortium buys US chip producer OmniVision
12:07a YOUGOV : Labour and Conservatives tied again ahead of UK election -poll
12:07a Global cancer drug spending hits $100 billion in 2014 - IMS Health
12:07aDJASIA MARKETS : Asia Shares Mixed As Australia Awaits Rate Decision
Latest news
Advertisement
Hot News 
Novel Gene-Based Therapy for Achromatopsia Demonstrates Functional Rescue of Cone Cells
PATTERSON : Acquiring Animal Health International will more than double the size of Patterson’s veterinary business.
INVENSENSE : meets 4Q profit forecasts
NORTEK : reports 1Q loss
SALLY BEAUTY : stores probing possible data breach
Most Read News
05/04 WASION : Announcements and Notices - Placing of Existing Shares and Subscription for New Shares
05/04DJFACEBOOK : Investor Urges Facebook to Eliminate Supervoting Stock
05/04 COCA COLA : NMSU FOOTBALL: Allen Theatres to fund football lockerroom renovations
05/04 CANFOR PULP PRODUCTS : Announces Voting Results for the Election of Directors
05/04 AMERIPRISE FINANCIAL : Uncertainty Looms After Fed Calls Q1 Headwinds ‘Transitory’
Most recommended articles
12:07a Global cancer drug spending hits $100 billion in 2014 - IMS Health
12:07aDJASIA MARKETS : Asia Shares Mixed As Australia Awaits Rate Decision
05/04 GBP/JPY TECHNICAL ANALYSIS : Support Now Below 181.00
05/04DJSTEVE JOBS : David Goldberg's Death Leaves Silicon Valley Without a Champion
05/04DJMexico's Femsa Considers Expansion in Texas
Dynamic quotes  
ON
| OFF