Japanese inflation target a partial success – Fed paper

Federal Reserve
Fed researchers say BoJ has been hampered by limited credibility

Adopting an inflation target during a liquidity trap can have powerful effects on output and inflation, but the move seems to have been hampered in Japan by credibility problems, authors from the Federal Reserve find in a discussion paper.

Andrea De Michelis and Matteo Iacoviello use a vector autoregression to model the effects of introducing an inflation target in their paper, Raising an Inflation Target: the Japanese Experience with Abenomics. They find the effects are more powerful during a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: