Term premiums matter for inflation – BoJ paper

Central Bank of Japan
The Bank of Japan

Term premiums in Japan and the US matter for Japanese inflation, according to a working paper published on June 9 by the Bank of Japan (BoJ).

Authors Mitsuru Katagiri and Koji Takahashi study whether term premiums matter for inflation via an exchange rate effect, noting there is generally an observed relationship between long-term interest rate differentials and the exchange rate, which is often explained by the theory of uncovered interest parity.

On the basis of a small open-economy model

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: