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The Morning After: Explaining the Slowdown in Japanese Growth in the 1990s / Tamim Bayoumi.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Bayoumi, Tamim.
Contributor:
National Bureau of Economic Research.
Series:
Working Paper Series (National Bureau of Economic Research) no. w7350.
NBER working paper series no. w7350
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
The Morning After
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 1999.
Summary:
This paper uses a VAR to investigate four possible explanations of the extended slump in Japanese economic activity over the 1990s: the absence of bold and consistent fiscal stimulus; the limited room for expansionary monetary policy due to a liquidity trap; overinvestment and debt overhang; and disruption of financial intermediation. The results indicate that all of these factors played a role, but that the major explanation is disruption in financial intermediation, largely operating through the impact of changes in domestic asset prices on bank lending.
Notes:
Print version record
September 1999.

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