Determinants of the Japan Premium: Actions Speak Louder Than Words / Joe Peek, Eric S. Rosengren.

Format:

Book

Author/Creator:

Peek, Joe.

Contributor:

National Bureau of Economic Research.

Rosengren, Eric S.

Series:

Working Paper Series (National Bureau of Economic Research) no. w7251.

NBER working paper series no. w7251

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Determinants of the Japan Premium

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1999.

Summary:

Since August 1995, Japanese banks have had to pay a premium on Eurodollar and Euroyen interbank loans relative to their U.S. and U.K. competitors. This so-called Japan premium' provides a market indicator of investor anxiety about the ability of Japanese banks to repay loans. We examine the determinants of the Japan premium and find that government announcements not associated with concrete actions had little impact. On the other hand, announcements of concrete actions by the Japanese government, such as injections of funds into the banking system, tended to have an effect on the size of the Japan premium.

Notes:

Print version record

July 1999.