Japanese monetary policy and household saving

Karl-Friedrich Israel; Tim Florian Sepp; Nils Sonnenberg

Oktober 2021

Abstract

This article analyzes the impact of monetary policy on household saving in Japan between 1993 and 2017. Using annual data from the Japan Panel Survey of Consumers it is shown that monetary expansion has contributed to a widening gap in households’ net saving through an adverse effect on the volume of saving of non-academic households. In contrast, households with at least one academic tend to be able to compensate these adverse effects of monetary expansion or can even benefit from it. The article documents how inequality in terms of the ability to build up wealth has increased in Japan over the past decades. The statistical analysis controls for household size as well as potential spatial effects in the transmission mechanism of monetary policy on household saving.

Keywords: , , , , .

JEL Codes: , , , .

Erschienen in

Applied Economics, 1-17.

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The Brexit as a Forerunner: Monetary Policy, Economic Order and Divergence Forces in the European Union

Gunther Schnabl; Sebastian Müller

Dezember 2019

Abstract

The paper analyzes the effects of the increasingly expansionary monetary policies on the economic order in Europe and the European integration process. It is argued that a liberal market order and a tight monetary policy stance shaped in postwar Germany and in United Kingdom have long served as cornerstones for growth, prosperity and social cohesion in Europe. A prolonged loose monetary policy stance of the European Central Bank has undermined these orders, thereby diminishing productivity gains and growth. Combined with negative distribution effects, those monetary policies constitute the breeding ground for divergence forces in the European Union as heralded by the Brexit.

Keywords: , , , , , , , , , .

JEL Codes: .

Erschienen in

The Economists’ Voice, 16(1).

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Monetary policy, inequality and political instability

Pablo Duarte; Gunther Schnabl

Februar 2019

Abstract

Voters in the industrialised countries are increasingly expressing dissatisfaction by dissenting from the established political parties and candidates. Based on the concepts of justice by Hayek, Rawls and Buchanan, we argue that the growing dissatisfaction is rooted in the asymmetric pattern of monetary policies since the mid-1980s for two reasons. First, the structurally declining interest rates and the unconventional monetary policy measures have granted privileges to specific groups. Second, the increasingly expansionary monetary policies have negative growth effects, which have reduced the scope for compensation of the ones excluded from the privileges. As a result, the acceptance of the prevailing economic and political order is undermined and political instability increases.

Keywords: , , , , , , , .

Erschienen in

The World Economy, 42(2), 2019, 614-634.

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via Wiley

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