|Budget Amount *help
¥3,700,000 (Direct Cost : ¥3,700,000)
Fiscal Year 1995 : ¥500,000 (Direct Cost : ¥500,000)
Fiscal Year 1994 : ¥900,000 (Direct Cost : ¥900,000)
Fiscal Year 1993 : ¥2,300,000 (Direct Cost : ¥2,300,000)
This research is based on a newly created data set for financial market analysis. The obtained results are three folds : (1) findings on the structural change of the financial market, (2) findings on the change in the monetary and proposals on the proper way to conduct the monetary policy responding to the changed financial market environment, (3) proposals to the management of financial institutions, regulations and the financial system.
(1), the detailed analysis on the change in the cost and yield structure of financial markets over last 40 years made the role of financial dereguation on the behavior of financial institutions clear. The changed roles of the monetary policy and financial regulations over the last 40 years are also empirically traced and documented based on the obtained data. (2), Using the detailed extensive data set, an empirical examination of the monetary policy in 1980s was made and lessons from the monetary policy of the days of speculative bubbles were drown theoretically and empirically. Based on a theoretical analysis which benefited from the development of the rational expectations theory, a clear prospect and proposal for the monetary policy after the deregulation are presented. (3), Based on the analysis made in part (1), new regulations and supervisory system which fit to the deregulated financial market environment were analyzed. Number of proposals and policy measures to promote the financial market stability and the soundness of financial institutions are presented.
In summary, following points are made clear theoretically and empirically ; Under the deregulated market conditions, financial institution's risk management system based on its own responsibility need to be established. In order to support this, the supervisory system has to be re-structured in order to use the market mechanism. A stable monetary policy which ensures a foreseeable and stable economic conditions has to be adopted based on a stable money supply rule.