2011 Fiscal Year Final Research Report
Monetary and Fiscal Policies under Very Low Interest Rate and Government Debt Accumulation
| Project/Area Number |
22730229
|
|---|
| Research Category |
Grant-in-Aid for Young Scientists (B)
|
| Allocation Type | Single-year Grants |
|---|
| Research Field |
Economic policy
|
|---|
| Research Institution | Nagasaki University |
|---|
Principal Investigator |
KUDO Takeshi 長崎大学, 経済学部, 准教授 (70404316)
|
|---|
| Project Period (FY) |
2010 – 2011
|
| Keywords | 経済政策 |
|---|
| Research Abstract |
Our perspective from the fiscal policy rule shows that the deterioration of fiscal balance after the 2008 global financial crisis reduces the effects of monetary policy in Japan. Our theoretical analysis on the relationship between fiscal policy and currency crisis verifies that the Argentine currency crisis in 2001 was caused by the violation of budget constraint of public sector. Our perspective from the monetary policy rule verifies that the imperfect capital mobility among the nations caused by serious financial crisis tends to prolong the duration of zero interest rate policy as an optimal monetary policy rule.
|
