Journal of Finance and Economics

Journal of Finance and Economics

ISSN: 2291-4951 (Print)    ISSN: 2291-496X (Online)

Volume 2 (2014), No. 2, Pages 77-85

DOI: 10.12735/jfe.v2i2p77

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Has Zero Interest Rate Policy of the Bank of Japan Influenced Financial Markets?

Yutaka Kurihara1 

1Department of Economics, Aichi University, Nagoya, Japan

URL: http://dx.doi.org/10.12735/jfe.v2i2p77Citations: 4 (Details)

To Cite this Article     Article Views: 660     Downloads: 607  Since January, 2015

Abstract

This article empirically examines the effect of zero interest rate policy of the Bank of Japan on financial markets. Zero interest rate policy was first introduced in Japan and has been adopted to combat deflation and to promote the economy. This policy was later implemented by other developed countries, including the United States and United Kingdom. Empirical results show that this policy has effectively influenced the expectation of markets, namely, over one-year future interest rates. The zero interest rate policy has been effective in lowering and stabilizing interest rates to boost the economy in Japan.

JEL Classifications: E52, E58

Keywords: monetary policy, quantitative easing, zero interest rate policy

To Cite this Article: Kurihara, Y. (2014). Has zero interest rate policy of the bank of Japan influenced financial markets? Journal of Finance and Economics, 2(2), 77-85. http://dx.doi.org/10.12735/jfe.v2i2p77

Copyright © Yutaka Kurihara

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This article is published under license to Science and Education Centre of North America. This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International License.

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Has Zero Interest Rate Policy of the Bank of Japan Influenced Financial Markets?
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