Log in
Login
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

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 : kou.munakata@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
share with twitter share with LinkedIn share with facebook
share via e-mail
0
React to this article
Latest news
Date Title
10:46p Hong Kong Gifts & Premium Fair and the International Printing & Packaging Fair Attract 64,000+ Buyers
10:29p RENAULT : 'Irresistible' 2016 Duster
10:29p NISSAN MOTOR : unveils new model lineup at Auto China 2016
10:29p TOYOTA MOTOR : Mirai wins 2016 World Green Car Award
10:28p NORTHROP GRUMMAN : showcases key technologies to keep Kingdom secure
10:28p FERRARI NV : Hamilton fastest in Sochi
10:28p APPLE : today goes doc's way
10:28p ALMARAI : King Abdullah Port and 2030 Vision
10:28p JAZEERA AIRWAYS KSC : to start flights to Taif
10:24p STARBUCKS : opens first location in South Africa
Latest news
Advertisement
Hot News 
ANDALAS ENERGY AND POWER : Issue of Zero Coupon Loan Note
6D GLOBAL TECHNOLOGIES, INC : Change in Directors or Principal Officers, Financial Statements and Exhibits (form 8-K)
AVOLON : sustains strong performance as fleet increases to over 400 aircraft
PETRO MATAD : Expecting "Highly Material" Compensation From Partner
HML : Director Dealing April 2016
Most Read News
04/29 SAMARCO MINERAÇÃO : Citizen’s Home is inaugurated in Anchieta (ES)
04/29 EMERALD PLANTATION : Notice of Extraordinary General Meeting
12:15a NIOC NATIONAL IRANIAN OIL : Asias March Iran Oil Imports Up 50
04/29 Introducing New Villa Homes In The Charming Town Of Noblesville, IN
04/29 IMPORTANT LA QUINTA Wolf Haldenstein Adler Freeman & Herz LLP reminds investors that a class action lawsuit has been commenced on behalf of shareholders of La Quinta Holdings Inc. -- LQ
Most recommended articles
03:41p Buffett, Munger slam Valeant; drugmaker turned into 'a sewer'
03:19p BERKSHIRE HATHAWAY : Buffett says would pursue big Berkshire stock buyback if warranted
02:37p Buffett defends Berkshire's Coke stake, warns on BNSF
02:28p MARK DONEGAN : Buffett defends Berkshire's Coke stake, warns on BNSF
01:23p WARREN BUFFETT : Buffett defends Berkshire's big Coke stake