Open AccessHas Adoption of Inflation Targeting Been Effective? Japanese Case
Author(s) -
Yutaka Kurihara
Publication year - 2018
Publication title -
international journal of accounting and finance studies
Language(s) - English
Resource type - Journals
eISSN - 2576-201X
pISSN - 2576-2001
DOI - 10.22158/ijafs.v1n2p133
Subject(s) - deflation , inflation targeting , monetary policy , inflation (cosmology) , economics , keynesian economics , monetary economics , physics , theoretical physics
Inflation targeting has been adopted in many countries. The pros and cons of adopting this policy have been discussed in developing countries and in developed ones as the goal of this policy has been changing. For most developed economies, combating deflation has been a serious problem, so adopting inflation targeting for this overcoming deflation and recession is ongoing in many developed economies. This paper examines whether or not adoption of inflation targeting has been effective in Japan. Empirical results show that adoption of inflation targeting has promoted overcoming deflation, however, there are no clear results that other important macroeconomic variables have been related directly with this policy.