Lau, Wee-Yeep and Yip, Tien-Ming (2023) Are monetary transmission channels effective under the quantitative and qualitative easing policy? Acta Oeconomica, 73 (2). pp. 231-249. ISSN 0001-6373, DOI https://doi.org/10.1556/032.2023.00014.
Full text not available from this repository.Abstract
This study measures the effectiveness of monetary transmission channels of the Bank of Japan's (BOJ) Quantitative and Qualitative Monetary Easing (QQE) policy in affecting Japan's inflation rate. The monetary transmission channels are interest rate, portfolio rebalancing and foreign exchange rate channels. Based on data from 1 August 2013 to 31 October 2019, the Granger's Causality Test showed that the interest rate channel was vital in transmitting the effect of monetary easing. Specifically, the interest rate channel transmitted the effect of QQE, QQE with a negative interest rate and QQE with yield curve control policy to the domestic price level. Portfolio rebalancing and foreign exchange rate channels did not influence Japan's inflation rate in all the QQE policy periods. The empirical results are robust against different estimation methods. Based on the findings, the study offers some imperative policy recommendations.
| Item Type: | Article |
|---|---|
| Funders: | Faculty of Economics and Administration, Universiti Malaya [Grant no. GPF008P-2019] |
| Uncontrolled Keywords: | monetary transmission channels; quantitative and qualitative easing; inflation rate; interest rate channel Japan |
| Subjects: | H Social Sciences > HG Finance |
| Divisions: | Faculty of Business and Economics > Department of Decision Science |
| Depositing User: | Ms. Juhaida Abd Rahim |
| Date Deposited: | 20 Oct 2025 07:29 |
| Last Modified: | 20 Oct 2025 07:29 |
| URI: | http://eprints.um.edu.my/id/eprint/48254 |
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