Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/195770
Authors: 
Latsos, Sophia
Year of Publication: 
2019
Series/Report no.: 
Working Paper No. 159
Abstract: 
This paper scrutinizes the role of prolonged, expansionary monetary policy on the savings behavior of Japanese households, focusing on the dramatic change of the household savings behavior since 1998, from high to low savings. Existing literature generally attributes this behavioral change to the country's shift from a high-growth to a low-growth economy and its demographic change. In contrast, this paper empirically examines changes in the incentives for saving and the ability to save connected to monetary policy. It finds that monetary policy has had a significant impact on Japan's household behavior via three channels: the interest rate channel, the redistribution channel, and the wealth channel.
Subjects: 
household saving
interest-rate elasticity of saving
Japanese household savings
Bank of Japan
low interest rate policy
JEL: 
E21
E52
Document Type: 
Working Paper

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