scholarly journals Transmission mechanisms in Japan’s quantitative easing policy (2001–2006)

2017 ◽  
Vol 6 (2) ◽  
pp. 35 ◽  
Author(s):  
Hiroyuki Ijiri
Keyword(s):  
Bank Lending ◽  
Var Model ◽  
Quantitative Easing ◽  
Time Varying ◽  
Transmission Channel ◽  
Bank Lending Channel ◽  
Monthly Data ◽  
Lending Channel ◽  
Transmission Mechanisms ◽  
Time Varying Parameter

This study investigates exchange rates and bank lending as the transmission channels for Japan’s Quantitative Easing Policy (QEP) during 2001–2006. Using a Time Varying Parameter-VAR model and monthly data to analyze the dynamism of the QEP, this study is the first to show that the exchange rate channel was the effective QEP transmission channel after around 2005, while the bank lending channel was inactive.

Spillovers of the United States’ Unconventional Monetary Policy to Emerging Asia

2019 ◽  
pp. 118-145
Author(s):  
Ying Xu ◽  
Hai Anh La
Keyword(s):  
United States ◽  
Monetary Policy ◽  
Bank Lending ◽  
The United States ◽  
Quantitative Easing ◽  
Unconventional Monetary Policy ◽  
Bank Lending Channel ◽  
Lending Channel ◽  
Cross Border ◽  
Syndicated Loan Market

This chapter assesses the spillover effects of the United States’ unconventional monetary policy on the Asian credit market. With a focus on cross-border bank lending, it employs firm-level loan data with regard to the syndicated loan market and measures the international bank lending channel through changes in United States dollar-denominated loans extended to Asian borrowers. It finds that the growth of dollar credit in Asia increased substantially in response to quantitative easing in the US financial market. The results of this study confirm the existence of the bank lending channel in Asia and emphasize the role of credit flows in transmitting financial conditions. The chapter also provides new evidence of cross-border liquidity spillover in the syndicated loan market. It finds that the overall spillover effect was large but differed significantly in Asia by types of borrowing firms, financing purposes, and loan terms at different stages of the quantitative easing programmes.

scholarly journals Monetary Policy And Bank Lending Chanel in Turkey

2017 ◽  
Vol 6 (2) ◽  
pp. 24 ◽  
Author(s):  
Zafer Adalı ◽  
Bilgin Bari
Keyword(s):  
Price Index ◽  
Balance Sheet ◽  
Impulse Response Function ◽  
Bank Lending ◽  
Positive Influence ◽  
Var Model ◽  
Bank Lending Channel ◽  
Producer Price ◽  
Lending Channel ◽  
Main Determinants

<p><em>The main purpose of this study is to evaluate whether the bank lending channel exist or not. Within this context, quarterly data of for the periods between 2002q1 and 2016q4 was taken into the consideration. Additionally, VAR model was used to reach the objective. According to the result of impulse response function, it was reached that</em><em> producer price index, real exchange rate and policy rate are effective determinants. Additionally, banks balance sheet has important and positive influence on total credits but industrial production index is regarded as partially effective. While considering this result, it was also found that both bank balance and macroeconomic variables used in this study is the main determinants of bank total credit.</em></p>

scholarly journals Bank Lending Channel in Transmission of Monetary Policy in Japan, 2000–2012: The Sign Restrictions VAR Approach

2017 ◽  
Vol 4 (2) ◽  
pp. 87
Author(s):  
Masao Kumamoto ◽  
Juanjuan Zhuo
Keyword(s):  
Monetary Policy ◽  
Forecast Error ◽  
Error Variance ◽  
Bank Lending ◽  
Quantitative Easing ◽  
Bank Lending Channel ◽  
Lending Channel ◽  
Forecast Error Variance ◽  
Monetary Policy Shock ◽  
Regional Banks

This paper investigates empirically whether the bank lending channel of monetary policy existed in Japan from 2000 to 2012. We employ the sign restrictions VAR approach to deal with the identification problem. In particular, we focus on the differential effects of a quantitative easing monetary policy regardless of bank (City banks vs. Regional banks) and firm (all enterprises vs. small and medium-sized enterprises－SMEs) size. Our impulse response function analyses show that following a quantitative easing monetary policy shock, the lending of Regional banks increases more than that of City banks, and the bank lending rate of Regional banks declines in a larger magnitude. Moreover, the responses of output to reserve supply are larger in Regional banks than that in City banks. Our variance decomposition analyses show that a larger proportion of the forecast error variance in the bank lending of Regional banks relative to City banks, and a larger proportion of the forecast error variance in the bank lending to SMEs relative to all firms can be explained by monetary policy shock. Similarly, the loans of Regional banks have a larger impact on output than the loans of City banks, and the loans to SMEs have a larger impact on output than the loans to all firms. Moreover, output is more affected by the reserve supply to Regional banks than to City banks. These results together indicate that a quantitative easing policy has a greater impact on the real economy through the lending of Regional banks.

scholarly journals Monetary Policy Transmission Mechanisms

2020 ◽  
Vol 11 (4) ◽  
Author(s):  
Sergey Kurgansky
Keyword(s):  
Monetary Policy ◽  
Aggregate Demand ◽  
Bank Lending ◽  
Bank Lending Channel ◽  
Policy Makers ◽  
Inflation Expectation ◽  
Lending Channel ◽  
Transmission Mechanisms ◽  
Theoretical Approaches ◽  
Policy Transmission

Policy-makers must be able to accurately assess the effects of their policies on the economy, especially in the period of economic instability. To do this, they need to study the mechanisms through which monetary policy affect the economic activity. The article examined theoretical approaches and ways (or channels), in which monetary policy effect aggregate demand and other economic indicators. The article showed that efficiency of the transmission mechanism and its channels are determined by the state-of-the-art of the financial system. In Russia the following channels play a significant role: interest-rate, exchange rate, bank lending channel and inflation expectation channels.

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