Re-evaluate monetary policy under deflation

2019 Fiscal Year Final Research Report

• 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
• Keywords: 最適金融政策 / 流動性の罠

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.

Free Research Field

金融政策

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。