Japan's negative risk premium in interest rates: The liquidity trap and the fall in bank lending

World Economy

Volumn 26, Issue 3, 2003, Pages 339-363

  Goyal, Rishi ^a   Mckinnon, Ronald ^b  

^a INTERNATIONAL MONETARY FUND   (United States)

^b STANFORD UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

BANKING; INTEREST RATE; LENDING BEHAVIOR; RISK FACTOR;

JAPAN;

EID: 0037984452     PISSN: 03785920     EISSN: None     Source Type: Journal    
DOI: 10.1111/1467-9701.00526     Document Type: Article

References (12)

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2. Bank of Japan (2002), Locational International Banking Statistics (http://www.boj.or.jp/en/).
3. Fukao, M. (2002), 'Japan's Lost Decade and Weaknesses in its Corporate Governance Structure.' Paper presented at the Symposium, Japan's Lost Decade: Origins, Consequences and Prospects for Recovery (University of Michigan (March); a revised version is included in this Symposium).
4. Goyal, R. (2001), 'Foreign Exchange Risk and Japan's Liquidity Trap' (Stanford University, mimeo).
5. International Monetary Fund (2002), International Financial Statistics, CD-ROM (March).
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7. Lane, P. and G. M. Milesi-Ferretti (2001), 'Long-Term Capital Movements,' NBER Macroeconomics Annual 2001 (Cambridge: MIT Press).
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9. McKinnon, R. I. and K. Ohno (2001), 'The Foreign Exchange Origins of Japan's Economic Slump and Low Interest Liquidity Trap,' The World Economy, 24, 279-315.
10. Shirakawa, M. (2001), 'Monetary Policy Under the Zero Interest Rate Constraint and Balance Sheet Adjustment,' International Finance, 4, 463-89.
11. Svensson, L. (2001), 'The Zero Bound in an Open Economy: A Foolproof Way of Escaping from a Liquidity Trap,' Monetary and Economic Studies, Special Edition (Institute for Monetary and Economic Studies, Bank of Japan), 19, S-1, 277-312.
12. Yoshikawa, H. (1990), 'On the Equilibrium Yen-Dollar Rate,' American Economic Review, 80, 576-83.