This paper provides a brief explanation and a detailed documentation of the current version of the Quarterly Japanese Economic Model (Q-JEM), which has been developed and constantly updated since the mid-2000s at Research and Statistics Department, Bank of Japan. Q-JEM is a large-scale...

This paper explores a causal link between aging of the labor force and declining trends in the real interest rate and inflation in Japan. We develop a New Keynesian search/matching model that features heterogeneities in age and firm-specific skills. Using the model, we examine the long-run...

How does a grayer society affect the political decision-making regarding inflation rates? Is deflation preferred as a society ages? In order to answer these questions, we compute the optimal inflation rates for the young and the old respectively, and explore how they change with demographic...

This summary investigates how robots affect several variables related to labour, and vice versa. In order to evaluate the causal relationship, we use quality-adjusted robot stock data and labour market data from 26 industries in 33 countries. According to the results obtained from three...

Using a model of island economy where financial markets aggregate dispersed informationof the public, we analyze how two-way communication between the central bankand the public affects inflation dynamics. When inflation target is observable and credibleto the public, markets provide the bank...