Arbeitspapier
Understanding benign liquidity traps: The case of Japan
Japan has been in a benign liquidity trap since 1990. In a benign liquidity trap, interest rates approach zero, prices decline, and monetary policy is ineffective but output and employment perform decently. Such a pattern contradicts traditional macro theories. This paper introduces a monetary general equilibrium model that is compatible with Japan's performance and resolves puzzles associated with liquidity traps. Possible conclusions for Anglo-Saxon countries and eurozone members are also discussed.
- Language
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Englisch
- Bibliographic citation
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Series: Hannover Economic Papers (HEP) ; No. 557
- Classification
-
Wirtschaft
Price Level; Inflation; Deflation
Interest Rates: Determination, Term Structure, and Effects
Monetary Policy
- Subject
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liquidity trap
Japan
interest rate determination
monetary policy
quantitative easing
forward guidance
dynamic general equilibrium
secular stagnation
- Event
-
Geistige Schöpfung
- (who)
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Homburg, Stefan
- Event
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Veröffentlichung
- (who)
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Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät
- (where)
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Hannover
- (when)
-
2015
- Handle
- Last update
- 10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Homburg, Stefan
- Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät
Time of origin
- 2015
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