Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Bank of Japan : (Research Paper) Welfare Analysis of Policy Measures for Financial Stability

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/01/2013 | 08:29am CEST

March 1, 2013
Ko Munakata*
Koji Nakamura**
Yuki Teranishi***

Abstract

We introduce the financial market friction through the search and matching in the loan market into a dynamic stochastic general equilibrium (DSGE) model. We reveal that the second order approximation of social welfare includes the terms relating credit, such as credit market tightness, the volume of credit, and a loan separation rate, in addition to the inflation rate and the output gap under the financial market friction. Our analytical result justifies the reason why the optimal policy should take the credit variation into account. We introduce a monetary policy and other policy measures for the financial stability into the model. The optimal outcome is achieved through the monetary and other policy measures by taking into account not only price stability but also financial stability.

We thank Kosuke Aoki for valuable suggestions and comments. Views expressed in this paper are those of the authors and do not necessarily reflect the official views of the Bank of Japan.

* Oita Branch
E-mail : [email protected]
** Financial System and Bank Examination Department
E-mail : [email protected]
*** Financial System and Bank Examination Department
E-mail : yuuki.te[email protected]
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 ([email protected]) 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
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
01:55aUNECA UNITED NATIONS ECONOMIC COMMISSION FOR AFR : Consultations on Integrated Planning and Reporting Toolkit and Policy Modeling towards greater effectiveness
PU
01:50aMINISTRY OF AGRICULTURE OF PEOPLE REPUBLIC O : Chief Veterinary Officer Zhang Zhongqiu Meets US Deputy Secretary of Agricult...
PU
01:50aMINISTRY OF AGRICULTURE OF PEOPLE REPUBLIC O : Vice Minister Zhang Taolin Meets Finnish Minister of Agriculture and Forestry...
PU
01:40aMOAF MINISTRY OF AGRICULTURE AND FORESTS OF BHUT : Livestock Sector, Lhuentse Working Continued Towards Sustainable Dairy Production.
PU
01:26aU.S., CHINA NEARING DEAL TO REMOVE U.S. SALES BAN AGAINST ZTE : sources
RE
01:20aWORLD BANK : Strong Clinical Research Capacity in At-Risk Countries Key to Global Epidemic Prevention
PU
01:20aAFRICAN DEVELOPMENT BANK : South Korea’s rapid development is an inspiration to Africa, says African Development Bank President
PU
01:16aNEWS HIGHLIGHTS : Top Company News of the Day
DJ
01:16aNEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
01:10aU.S. farmers plow ahead with plantings as China trade war fears ebb
RE
Latest news "Economy & Forex"
Advertisement