@article{oai:kyotogakuen.repo.nii.ac.jp:00000916,
 author = {宮川, 重義 and 森田, 洋二 and Miyagawa, Shigeyoshi and Morita, Yoji},
 issue = {1},
 month = {2010-09-01, 2018-06-07},
 note = {The paper addresses the effectiveness of monetary policy in the prolonged Japan’s recession. A large amount of research has been aimed at the topic. A majority of the previous paper denies the effectiveness of monetary policy in the deflation. The Bank of Japan always insists that monetary policy does not work well especially in the severe deflation. However the role of money should not be ignored when we considers M. Friedman’s word “Both inflation and deflation are monetary phenomenon.”
The paper will apply the Vector Error Correction Model into Japan’s economy over the period from 1980q1 through 2009q1. The model examines whether or not there exists a long-run equilibrium relationship between the monetary base and economic activity, paying a close attention to the precautionary money demand caused by the financial anxiety. People are expected to increase the precautionary demand, facing the financial crisis. The survey data is used to quantify the financial anxieties. The result shows that the cointegration property among monetary base and economic acclivity still hold even after Japan’s economy fallen into the deflation in 1997, when people’s financial anxiety is taken into account.
The paper also analyzes the existence of the liquidity trap by the same model. The data analysis demonstrates the non-existence of the trap. Thus, we conclude that monetary policy is still effective and the BOJ’s role is crucially important to combat against the prolonged recession., 3, KJ00007986699, Article},
 pages = {43--62},
 title = {Monetary Policy in the Deflationary Economy; Japan's Experience},
 volume = {20},
 year = {},
 yomi = {ミヤガワ, シゲヨシ and モリタ, ヨウジ}
}