Research on the Communication of the Bank of Japan with Markets,Monatry Policy Oeration, and Reaction of Financial Markets

2014 Fiscal Year Final Research Report

• Project/Area Number: 22530305
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Single-year Grants
• Section: 一般
• Research Field: Public finance/Monetary economics
• Research Institution: Meiji University (2014); Niigata University (2010-2013)
• Principal Investigator: ITO TAKAYASU 明治大学, 商学部, 教授 (60361888)
• Project Period (FY): 2010-04-01 – 2015-03-31
• Keywords: 金融論 / 中央銀行 / 市場との対話 / 金融政策 / 金融市場

Outline of Final Research Achievements

This research focused on the communication with markets by the Bank of Japan (BOJ), monetary policy operation and the reaction of the financial markets. The BOJ actively communicated with financial markets after the introduction of comprehensive easing policy in 2010. This caused the tightening of corporate bond spreads and the increase of stock price after three months of the policy inroduction. Three months after the introduction of quantitative and qualitative easing policy in 2013, short term interest rates decreased. Stock price increased and Japanese yen depreciated, but long term interest rates increased. This showed us the limit of communication with financial markets by the BOJ. After Great East Japan Earthquake in March 11, 2011, the BOJ strengthened the communication with financial markets, easing policy and liquidity supply, thus resulting in the stability of the markets without troubles.

Free Research Field

金融・ファイナンス