Re-evaluate monetary policy under deflation

Research Project

Project/Area Number	17K03708
Research Category	Grant-in-Aid for Scientific Research (C)
Allocation Type	Multi-year Fund
Section	一般
Research Field	Economic policy
Research Institution	Keio University
Principal Investigator	Teranishi Yuki 慶應義塾大学, 商学部(三田), 准教授 (50710456)
Project Period (FY)	2017-04-01 – 2020-03-31
Project Status	Completed (Fiscal Year 2019)
Budget Amount *help	¥4,550,000 (Direct Cost: ¥3,500,000、Indirect Cost: ¥1,050,000) Fiscal Year 2019: ¥650,000 (Direct Cost: ¥500,000、Indirect Cost: ¥150,000) Fiscal Year 2018: ¥1,820,000 (Direct Cost: ¥1,400,000、Indirect Cost: ¥420,000) Fiscal Year 2017: ¥2,080,000 (Direct Cost: ¥1,600,000、Indirect Cost: ¥480,000)
Keywords	最適金融政策 / 流動性の罠 / 期待 / ゼロ金利政策 / インフレの慣性 / インフレ期待
Outline of Final Research Achievements	In this project, we re-evaluate roles of monetary policy in a liquidity trap. We publish two papers as working paper and one paper is published in highly evaluated global journal and another paper is on a process for publication. In a paper, Role of Expectation in a Liquidity Trap, we analyze role of expectations on effects of monetary policy in an economy with constant inflation expectation or persistence of inflation expectation. In a paper, Liquidity Trap and Optimal Monetary Policy Revisited, we show optimal monetary policy in a liquidity trap when inflation rates hold persistence.
Academic Significance and Societal Importance of the Research Achievements	流動性の罠の下で人々の期待形成が金融政策運営にとって非常に重要であることを明らかにすることができた。また、研究結果を、世界的にレベルの高い学術論文に掲載することや、セミナーなどで発表することを通じて、学術界に留まらず広く社会に発信することができた。