A veteran finance minister, Takahashi Korekiyo, brought an early recovery for Japan from the Great Depression of the 1930s by prescribing a combination of expansionary fiscal, exchange rate, and monetary policies. To explore the comprehensive transmission mechanism of Takahashi's macroeconomic...

Japan defaulted on its public debts only once throughout its modern history, after World War II (WWII). How did Japan lose its ability to sustain its public debts? This paper explores the sustainability of public debts in Japan before and during WWII. First, this paper reviews the brief history...

This paper studies the determinants of size differentials between fiscal multipliers in countries around the world, both advanced and developing economies. Besides domestic conditions and exchange rate regimes, we also introduce variables not before considered for explaining multiplier size...

This paper provides a historical case study in pre-modern era which shows that financial market stability is a necessary condition for an effective macroeconomic policy. We explore the implications on the rice market interventions as a tool of the macroeconomic policy in Japan's early 19th...

This paper assesses the effectiveness of unonventional monetary policy on the macro ecnomy. It focuses on the Japanese economy during the Bank of Japan's quantitative easing policy period, and analyzes the effects of monetary policy shocks and systematic monetary policy using the vector...

This study aims at understanding regional growth dynamics in Japan using nonstationary panel data. Since the panel unit root test does not adequately produce a detailed picture of the development of Japanese prefectures, we follow a panel cointegration approach using the PANIC method. We find...

The New Keynesian Phillips Curve (NKPC) is a key building block in many modern macroeconomic models. This study assesses the empirical fit of the NKPC in Japan by estimating a variety of its specifications. Some empirical results suggest that introducing nominal interest rates into the pure...

There are two ways of analyzing the efficacy of fiscal policy: the VAR approach and the nonlinear approach. The important difference between them is that the former assumes a linear effect of fiscal policy whereas the latter assumes a nonlinear effect. However, it has never been tested whether...

This paper examines the effects of Japanese monetary policy on individual firm's stock returns. Our objective is to test whether the firm-specific characteristics associated with the theories of monetary transmission mechanism can account for the heterogeneous responses of individual stock...

Studies using the dynamic panel regression approach have found the speed of income convergence among the world and regional economies to be high. For example, Lee et al. (1997, 1998) report the income convergence speed to be 30% per annum. This note argues that their estimates may be seriously...