Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/163130
Authors: 
Fukuda, Shin'ichi
Year of Publication: 
2017
Series/Report no.: 
ADBI Working Paper Series 631
Abstract: 
This paper explores the spillover effects of Japan's quantitative and qualitative easing (QQE) on East Asian economies. Under the new monetary policy regime, the Japanese yen depreciated substantially, raising concerns that it would have a regional beggar-thy-neighbor effect. It is thus important to see what effects the QQE had on neighboring economies. Our empirical investigation of East Asian stock markets finds that they first reacted to the yen's depreciation negatively, yet came to respond positively as the QQE progressed, implying that the QQE had a much smaller beggar-thy-neighbor effect than was originally feared. We show that the QQE benefited East Asian economies because the positive spillover effect of Japan's stock market recovery dominated the beggar-thy-neighbor effect in the region.
Subjects: 
spillovers
quantitative and qualitative easing
qqe
beggar-thy-neighbor effect
East Asia
yen depreciation
stock market
JEL: 
F10
F32
E52
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/3.0/igo/
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.