{
  "title": "A Peek Inside the Black Box: The Monetary Transmission Mechanism in Japan",
  "publication": "IMF Working Papers, October 1, 1999",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/a-peek-inside-the-black-box-the-monetary-transmission-mechanism-in-japan-3293",
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  "summary": "This paper uses vector autoregressions to examine the monetary transmission mechanism in Japan. The empirical results indicate that both monetary policy and banks’ balance sheets are important sources of shocks, that banks play a crucial role in transmitting monetary shocks to economic activity, tha",
  "sections": [
    {
      "heading": "Methodology",
      "content": "- Uses vector autoregressions to examine the monetary transmission mechanism in Japan.\n- Focus on identifying shocks originating from monetary policy and banks’ balance sheets and tracing their effects on economic activity."
    },
    {
      "heading": "Empirical findings",
      "content": "- Both monetary policy and banks’ balance sheets are important sources of shocks.\n- Banks play a crucial role in transmitting monetary shocks to economic activity.\n- Corporations and households have not been able to substitute borrowing from other sources for a shortfall in bank borrowing.\n- Business investment is especially sensitive to monetary shocks."
    },
    {
      "heading": "Policy conclusions and recommendations",
      "content": "- Policy measures to strengthen banks are probably a prerequisite for restoring the effectiveness of the monetary transmission mechanism."
    },
    {
      "heading": "Subject areas and keywords (as listed)",
      "content": "- Subjects: Bank credit, Banking, Financial institutions, Loans, Monetary base, Monetary policy, Monetary transmission mechanism, Money, National accounts, Private investment\n- Keywords: Asia and Pacific, bank behavior, Bank credit, bank loan, bank weakness, broad money, broad money shock, call rate, demand, interest rate, interest rate channel, interest rate shock, Loans, Monetary base, Monetary transmission mechanism, overnight call rate, private demand, Private investment, WP\n\nTamim Bayoumi, James Morsink — A Peek Inside the Black Box: The Monetary Transmission Mechanism in Japan\n\n---\n\n Content in this bundle\n\n- A Peek Inside the Black Box: The Monetary Transmission Mechanism in Japan - WP/99/137\n  - A Peek Inside the Black Box: The Monetary Transmission Mechanism in Japan - WP/99/137 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - A Peek Inside the Black Box: The Monetary Transmission Mechanism in Japan - WP/99/137 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/a-peek-inside-the-black-box-the-monetary-transmission-mechanism-in-japan-3293"
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    "Authors: Tamim Bayoumi, James Morsink",
    "Published: October 1, 1999",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451855890.001",
    "Uses vector autoregressions to examine the monetary transmission mechanism in Japan.",
    "Focus on identifying shocks originating from monetary policy and banks’ balance sheets and tracing their effects on economic activity.",
    "Both monetary policy and banks’ balance sheets are important sources of shocks.",
    "Banks play a crucial role in transmitting monetary shocks to economic activity.",
    "Corporations and households have not been able to substitute borrowing from other sources for a shortfall in bank borrowing.",
    "Business investment is especially sensitive to monetary shocks.",
    "Policy measures to strengthen banks are probably a prerequisite for restoring the effectiveness of the monetary transmission mechanism.",
    "Subjects: Bank credit, Banking, Financial institutions, Loans, Monetary base, Monetary policy, Monetary transmission mechanism, Money, National accounts, Private investment",
    "Keywords: Asia and Pacific, bank behavior, Bank credit, bank loan, bank weakness, broad money, broad money shock, call rate, demand, interest rate, interest rate channel, interest rate shock, Loans, Monetary base, Monetary transmission mechanism, overnight call rate, private demand, Private investment, WP",
    "**A Peek Inside the Black Box: The Monetary Transmission Mechanism in Japan - WP/99/137**"
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