| Budget Amount *help |
¥4,420,000 (Direct Cost: ¥3,400,000、Indirect Cost: ¥1,020,000)
Fiscal Year 2011: ¥1,430,000 (Direct Cost: ¥1,100,000、Indirect Cost: ¥330,000)
Fiscal Year 2010: ¥1,690,000 (Direct Cost: ¥1,300,000、Indirect Cost: ¥390,000)
Fiscal Year 2009: ¥1,300,000 (Direct Cost: ¥1,000,000、Indirect Cost: ¥300,000)
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| Research Abstract |
In the liquidity sump theory of stagnation, extreme pessimism about an economy's growth potential results in a decline in asset prices and a nearly insatiable demand for liquidity. My research has shown that conventional money and expenditure multipliers become small and unstable in sump conditions. Furthermore, standard dynamic models(e. g. DSGE models) based on predictable structural and behavioral relationships have no predictive power in a liquidity sump. In such extreme conditions, conventional demand-management policies are ineffective. The focus of policy must be on restoring confidence through credible long-term policies that address the root cause(s) of generalized pessimism.
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