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Deutsches Institut für Japanstudien
November 7, 2022

Discussion Paper on Japan’s monetary policy co-authored by Markus Heckel


DIJ economist Markus Heckel has co-authored the discussion paper Assessing Unconventional Monetary Policy in Japan Using Market Operation-based Monetary Policy Indices which was published in the RIETI Discussion Paper series in November 2022. Together with his co-authors Tomoo Inoue (Seikei University), Kiyohiko G. Nishimura (Graduate Institute for Policy Studies), and Tatsuyoshi Okimoto (Research Institute of Economy, Trade and Industry, RIETI), Markus analyzes the effectiveness of unconventional monetary policy (UMP) from 2002 to 2019. Their study quantifies the effect of UMP carried out by open market operations on the macroeconomy in Japan based on four market operation-based monetary policy indices. The results indicate that there were three distinctive regimes with different policy impacts and that UMP carried out using market operations was the most effective in the second regime (mid-2008 to mid-2016). The discussion paper is freely available for download here