| Username |
Post |
| wit's end |
Posted
on 08-Oct-03 12:16 PM
what is the monetary policy in Japan? As oppose to the US, which uses Fed Funds. Or perhaps other targets include money supply, bank reserve and the exchange rate. And how succesful is the monetary policy in Japan. Any ideas?
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| Bhunte |
Posted
on 08-Oct-03 12:55 PM
wit's end,
US's Fed has been recently doing what Japan did nearly a decade ago. US current policy was motivated after the stock market bubble of the late 90s. US kept loweing interest rate to check inflation and boost investment. Japan also did same but primarily to encourage investment. US still has a policy to maintain strong dollar, but recently there has been spontaneous observation for its desire for a weaker dollar. Japan has a weaker Yen policy. I believe US used bank reserve after 911 episode.....
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| wit's end |
Posted
on 09-Oct-03 12:26 PM
thanks bhunte ji :o)
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| Bhunte |
Posted
on 09-Oct-03 03:14 PM
wit's end,
welcome!
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| deepak_bista |
Posted
on 10-Oct-03 11:51 PM
I thinking Bhunteji does not understand what he is talking. His Japanese monetary policy assessment needs some correction from an expert like me with post doctoral research degree in Environmental Economics and Marketing.
Prior to mid-1990s, bank failures were rare events in post-World Japan. Then on November 17, 1997, Japanese regulators failed a large "city" bank for the first time since the end of World War 2. On October 23, 1998, and December 14, 1998, they nationalised two of the three very large long-term credit banks. In this article, I summarise the results of my recent post doctoral research on what these announcements meant for both surviving banks and firms that rely on the failed and surviving banks for credit and other banking services. These failures were important events that signaled information that could reasonably be expected to raise questions about the long term viability of surviving banks and the banking relationships both failed and surviving banks maintain with their client firms. The result of my investigation is of particular interest in light of the alleged lack of poor financial transparency in Japan, the uneven behaviour of the regulators, and the severity of the banking crisis in this period.
My research indicates that the three failures were perceived to be bad news for serviving banks were :
On avaerage, stock prices for the surviving banks declined around each of the announcement dates of failures, and the declines were greater for surviving banks with lower capitalisation and higher ratios of risky loans. This eveidence suggests that despite the alleged lack of transparency, stock market participants were able to incorporate new information relatively quickly-and by magnitudes and in directions that would be predictted by theory-and to differentiate among banks on the basis of their realtive characteristics. The policy implication is that bank regulators in japan can use market monitoring and dsicipline to promote a safer and more efficient banking system.
These announcements also had spillover effects for non financial clients of both failed and surviving banks and much more.
Bhunte has failed to spot any resemblance between USA and Japan. His impulsive cooments are superfluous in this analysis.
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| Bhunte |
Posted
on 11-Oct-03 12:06 AM
deepak ji,
i have read that a large number of large creditors failed in Japan. i didnt mean the context of japan and usa to be same. in order to buy your expertize, do you have any publications from your post-dco research that i can read? i appreciate that.
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