콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Financial Policy

Print

Monetary policy and economic activity in Japan, Korea, and the United States

Related Document
Frame of Image
  • Monetary policy and economic activity in Japan, Korea, and the United States
  • Braun, R. Anton; Shioji, Etsuro
  • Seoul National University(Institute of Economics Research)


link
Title Monetary policy and economic activity in Japan, Korea, and the United States
Similar Titles
Material Type Articles
Author(English)

Braun, R. Anton; Shioji, Etsuro

Publisher

[Seoul]:Seoul National University(Institute of Economics Research)

Date 2005
Journal Title; Vol./Issue Seoul Journal of Economics:vol. 19(no. 1)
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Original Format pdf
Subject Economy < Financial Policy
Holding Seoul National University

Abstract

A cornerstone of central bank policy is that a looser monetary policy is associated with lower interest rates, higher growth of narrow monetary aggregates, higher output and higher inflation. These responses, which we collectively refer to as the liquidity effect hypothesis, are commonly maintained in practice but are at odds with some leading models of money. This paper proposes and implements a methodology for assessing the liquidity effect hypothesis with two other hypotheses: The costly price adjustment hypothesis and the inflation tax hypothesis. We find surprisingly little support for the liquidity effect hypothesis in Japanese or U.S. data. The liquidity effect hypothesis receives its strongest support in Korean data.