Research on the Financial Accelerator Hypothesis and Financial Instability from the Perspectives of International Economy
| Project/Area Number |
17530252
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Public finance/Monetary economics
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| Research Institution | Doshisha University |
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Principal Investigator |
UEDA Hirofumi Doshisha University, Faculty of Commerce, professor (00268111)
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| Co-Investigator(Kenkyū-buntansha) |
FUJIWARA Hideo Doshisha University, Faculty of Commerce, professor (10104613)
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| Project Period (FY) |
2005 – 2007
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| Project Status |
Completed (Fiscal Year 2007)
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| Budget Amount *help |
¥3,410,000 (Direct Cost: ¥3,200,000、Indirect Cost: ¥210,000)
Fiscal Year 2007: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2006: ¥900,000 (Direct Cost: ¥900,000)
Fiscal Year 2005: ¥1,600,000 (Direct Cost: ¥1,600,000)
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| Keywords | financial instability / credit creation / relative risk aversion / money demand / market oriented indirect finance / flow of fund table / credit view / natural rate of unemployment / 危険回避度 / 金融政策の有効性 / フィナンシャル・アクセラレータ / 資産選択行動 / 資金移動 / 資本構造 |
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| Research Abstract |
We investigated the relationship between Financial economy and the Macro Economy from the View Point of Financial Instability Theory. Macro Economic Models were built on the basis of Keynesian Model and Monetarist Model. Then we consider the stability condition and compare the reason behind the differences in both Models. In addition, Financial Accelerator Theory was analyzed with taking into account of the real phenomenon in the world. Followings are results from research.
1. To make short-time market equilibrium stable, a reciprocal number of velocity and elasticity of money demand against interest rate need to be small.
2. Quantity theory of money is functional in the short, medium, long-term. Natural rate of unemployment is not lead in the long term equilibrium model
3. To make long-term market equilibrium stable, a reciprocal number of velocity should be over the lower limit lead by our model. The lower limit is decreasing function of saving rate and elasticity of money demand against expected rate of inflation. But it is increasing function of elasticity of investment against interest rate.
As for the concerning of financial accelerator hypothesis, we concluded that the relationship between aggregate credit and macro economic activities depend the degree of relative risk aversion of investors in their portfolio selection. If the degree of relative risk aversion is enough high, macro economy become fragile due to the large variation of credit. Those are also confirmed by our econometric analysis.
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Report
(4 results)
Research Products
(16 results)
