Conference Paper

Summary panel: Japan's experience with zero interest rates

Abstract: The current policy stance of the BOJ has an automatic stabilizer element in it despite the fact that we have hit the zero rate bound. That is to say, the promise to \\"keep the zero rate until deflationary concerns are over\\" puts downward pressure on long-term interest rates when people see negative signs about the economy because they expect the zero rate to stay for a longer period of time. A similar thing will happen anyway. But the current commitment seems to have strengthened the effect.

Keywords: Interest rates - Japan; Bank of Japan; Monetary policy - Japan;

Status: Published in Journal of money, credit and banking, v. 32, no. 4, pt. 2 (November 2000) ; Monetary policy in a low-inflation environment

Bibliographic Information

Provider: Federal Reserve Bank of Boston

Part of Series: Conference Series ; [Proceedings]

Publication Date: 2000

Pages: 1107-1109