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This study proposes a theoretical model for measuring the greenness factors of a firm. We develop the multifactor utility function and find that the proportion of investment in green bonds is higher if greenness factors account for by a firm and vice versa. Moreover, we further develop the global aspects of greenness measures which identify how much level of greenness is maintained by a firm to make the environment green. In terms of reduction in emissions based on global measures, we report that the proportion of investment in green bonds is higher. This study argues that the difference between firm-related and global measures of greenness refers to distortion in portfolio allocation. Lastly, we compare the results of five Asian countries and report that Japanese firms are appropriately following the greenness measures while the firms operating in developing countries including Indonesia, Malaysia, Pakistan, and Thailand are far behind in implementing the greenness measures.
Naoyuki Yoshino; Muhammad Zubair Mumtaz. Green Bonds and Global Optimal Portfolio Allocation. Advances in Pacific Basin Business, Economics and Finance 2021, 211 -223.
AMA StyleNaoyuki Yoshino, Muhammad Zubair Mumtaz. Green Bonds and Global Optimal Portfolio Allocation. Advances in Pacific Basin Business, Economics and Finance. 2021; ():211-223.
Chicago/Turabian StyleNaoyuki Yoshino; Muhammad Zubair Mumtaz. 2021. "Green Bonds and Global Optimal Portfolio Allocation." Advances in Pacific Basin Business, Economics and Finance , no. : 211-223.
The COVID-19 pandemic and the global recessions have reduced the investments in green projects globally that would endanger the achievement of the climate-related goals. Therefore, the post-COVID-19 world needs to adopt the green financial system by introducing new financial instruments. In this regard, green bonds—a type of debt instrument aiming to finance sustainable infrastructure projects—are growing in popularity. While the literature does not contest their effectiveness in fighting climate change, research highlights the high level of risks and low returns associated with this instrument. This study analyzes the green bond markets in different regions with a focus on Asia and the Pacific. It aims to fill the gap in the literature by conducting a comparative study of the characteristics, risks, and returns of green bonds based on the region. The study is based on theoretical background and empirical analysis using the data retrieved from Bloomberg New Energy Finance and the Climate Bonds Initiative. The empirical results are based on several econometrics tests using panel data analysis estimation methods, namely pooled ordinary least squares and generalized least squares random effects estimator. Our findings prove that green bonds in Asia tend to show higher returns but higher risks and higher heterogeneity. Generally, the Asian green bonds market is dominated by the banking sector, representing 60% of all issuance. Given that bonds issued by this sector tend to show lower returns than average, we recommend policies that could increase the rate of return of bonds issued by the banking sector through the use of tax spillover. In the era of post-COVID-19, diversification of issuers, with higher participation from the public sector and de-risking policies, could also be considered.
Farhad Taghizadeh-Hesary; Naoyuki Yoshino; Han Phoumin. Analyzing the Characteristics of Green Bond Markets to Facilitate Green Finance in the Post-COVID-19 World. Sustainability 2021, 13, 5719 .
AMA StyleFarhad Taghizadeh-Hesary, Naoyuki Yoshino, Han Phoumin. Analyzing the Characteristics of Green Bond Markets to Facilitate Green Finance in the Post-COVID-19 World. Sustainability. 2021; 13 (10):5719.
Chicago/Turabian StyleFarhad Taghizadeh-Hesary; Naoyuki Yoshino; Han Phoumin. 2021. "Analyzing the Characteristics of Green Bond Markets to Facilitate Green Finance in the Post-COVID-19 World." Sustainability 13, no. 10: 5719.
If students of economics or finance want to work in financial technology (fintech), they must first acquire at least a basic understanding of statistics and econometrics.
Naoyuki Yoshino. Understanding Fintech from a Macroeconomic Perspective. The Economics of Fintech 2021, 17 -30.
AMA StyleNaoyuki Yoshino. Understanding Fintech from a Macroeconomic Perspective. The Economics of Fintech. 2021; ():17-30.
Chicago/Turabian StyleNaoyuki Yoshino. 2021. "Understanding Fintech from a Macroeconomic Perspective." The Economics of Fintech , no. : 17-30.
Japan economy is dominated by Small and Medium enterprises. It covers around 99.7% of all enterprises operated in Japan and employs around 70% of the working population and account for a large portion of economic output. But, like other SMEs in the world, they also the ones that have hardly hit by COVID-19 quarantine and business closures. Japanese government made emergency loans and credit guarantee to assist SMEs. However, moral hazard problems of banks and SMEs have to be remedied. In the capital market, many investors take risk-averse behavior to anticipate further measures. Infrastructure investments are most needed in Asian region yet finance for infrastructure investments would face with shortage of funds due to low rate of return and risks. Private financing by long term investors such as pension funds and insurance better be directed to support infrastructure investment. Spillover tax revenues could be partly directed to increase the rate of return. The Japanese economy faces with aging population which would widen fiscal deficits unless postponement of retirement age and productivity-based wage rate rather than seniority wage rate facing with this crisis. Therefore, Japan government need to look into innovative policies options for sustainable economic growth.
Naoyuki Yoshino; Nella Hendriyetty. The COVID-19 Crisis: Policy Recommendations for Japan. The Economists' Voice 2020, 17, 1 .
AMA StyleNaoyuki Yoshino, Nella Hendriyetty. The COVID-19 Crisis: Policy Recommendations for Japan. The Economists' Voice. 2020; 17 (1):1.
Chicago/Turabian StyleNaoyuki Yoshino; Nella Hendriyetty. 2020. "The COVID-19 Crisis: Policy Recommendations for Japan." The Economists' Voice 17, no. 1: 1.
The lack of long-term financing, the low rate of return, the existence of various risks, and the lack of capacity of market players are major challenges for the development of green energy projects. This paper aimed to highlight the challenges of green financing and investment in renewable energy projects and to provide practical solutions for filling the green financing gap. Practical solutions include increasing the role of public financial institutions and non-banking financial institutions (pension funds and insurance companies) in long-term green investments, utilizing the spillover tax to increase the rate of return of green projects, developing green credit guarantee schemes to reduce the credit risk, establishing community-based trust funds, and addressing green investment risks via financial and policy de-risking. The paper also provides a practical example of the implementation of the proposed tools.
Farhad Taghizadeh-Hesary; Naoyuki Yoshino. Sustainable Solutions for Green Financing and Investment in Renewable Energy Projects. Energies 2020, 13, 788 .
AMA StyleFarhad Taghizadeh-Hesary, Naoyuki Yoshino. Sustainable Solutions for Green Financing and Investment in Renewable Energy Projects. Energies. 2020; 13 (4):788.
Chicago/Turabian StyleFarhad Taghizadeh-Hesary; Naoyuki Yoshino. 2020. "Sustainable Solutions for Green Financing and Investment in Renewable Energy Projects." Energies 13, no. 4: 788.
Farhad Taghizadeh Hesary; Naoyuki Yoshino; Tetsuro Mizoguchi. Optimal fiscal policy rule for achieving fiscal sustainability: the Japanese case. Global Business and Economics Review 2019, 21, 156 .
AMA StyleFarhad Taghizadeh Hesary, Naoyuki Yoshino, Tetsuro Mizoguchi. Optimal fiscal policy rule for achieving fiscal sustainability: the Japanese case. Global Business and Economics Review. 2019; 21 (2):156.
Chicago/Turabian StyleFarhad Taghizadeh Hesary; Naoyuki Yoshino; Tetsuro Mizoguchi. 2019. "Optimal fiscal policy rule for achieving fiscal sustainability: the Japanese case." Global Business and Economics Review 21, no. 2: 156.
The main obstacle to the development of Renewable Energy (RE) projects is lack of access to finance. Electricity tariff is often regulated by the government, hence, to increase the investment incentives the spill over effects originally created by energy supplies need to be used. Tax revenues are refunded to the investors in energy projects and such fiscal policy reform will increase the rate of return of energy projects. For smaller-size energy projects, this chapter provides a theoretical model for combining utilisation of carbon tax and a new way of financing risky capital, i.e., Hometown Investment Trust Funds (HITs). Because of the Basel capital requirement, and because most RE projects from the point of view of financers are considered to be risky projects, and thus many financers are reluctant to lend to them or they lend at high interest rates. This chapter theoretically shows that by taxing carbon dioxide (CO2), sulphur dioxide (SO2), and nitrogen oxides (NOx) and allocating those tax revenues to HITs, RE projects will become more feasible and more interesting for hometown investors, hence the supply of investment money to these funds will increase.
Naoyuki Yoshino; Farhad Taghizadeh-Hesary. Alternatives to Private Finance: Role of Fiscal Policy Reforms and Energy Taxation in Development of Renewable Energy Projects. Financing for Low-carbon Energy Transition 2018, 335 -357.
AMA StyleNaoyuki Yoshino, Farhad Taghizadeh-Hesary. Alternatives to Private Finance: Role of Fiscal Policy Reforms and Energy Taxation in Development of Renewable Energy Projects. Financing for Low-carbon Energy Transition. 2018; ():335-357.
Chicago/Turabian StyleNaoyuki Yoshino; Farhad Taghizadeh-Hesary. 2018. "Alternatives to Private Finance: Role of Fiscal Policy Reforms and Energy Taxation in Development of Renewable Energy Projects." Financing for Low-carbon Energy Transition , no. : 335-357.
In April 2013, the Bank of Japan (BOJ) introduced an inflation target of 2% with the aim of overcoming deflation and achieving sustainable economic growth. But due to lower international oil prices it was unable to achieve this target and was forced to take further measures. Hence, in February 2016, the BOJ adopted a negative interest rate policy by massively increasing the money supply through the purchase of long-term Japanese government bonds (JGB). The BOJ had previously only purchased short-term government bonds, a policy that flattened the yield curve of JGBs. On the one hand, banks reduced the number of government bonds they purchased because short-term bond yields had become negative. The interest rates of long-term government bond up to 15 years even became negative. On the other hand, bank loans to corporates did not increase, due to Japanese economy’s vertical investment–saving (IS) curve. The purpose of this paper is to show that the monetary policy through implementation of the zero interest rate and more recently through the negative interest rate could not help the Japanese economy to recover from the long-lasting recession and these are not the remedy. It is of key importance to make the IS curve downward rather than vertical. That means the rate of return on investment must be positive and companies must be willing to invest even if interest rates are set too low. Japan’s long-term recession is due to structural problems that cannot be solved by its current monetary policy. The paper also explains why the BOJ has to reduce its 2% inflation target in the present low oil price era.
Naoyuki Yoshino; Farhad Taghizadeh-Hesary; Nour Tawk. Decline of oil prices and the negative interest rate policy in Japan. Economic and Political Studies 2017, 5, 233 -250.
AMA StyleNaoyuki Yoshino, Farhad Taghizadeh-Hesary, Nour Tawk. Decline of oil prices and the negative interest rate policy in Japan. Economic and Political Studies. 2017; 5 (2):233-250.
Chicago/Turabian StyleNaoyuki Yoshino; Farhad Taghizadeh-Hesary; Nour Tawk. 2017. "Decline of oil prices and the negative interest rate policy in Japan." Economic and Political Studies 5, no. 2: 233-250.
This research sheds light on the elasticity of oil consumption of Japan’s various economic sectors and the crude oil price before and after the Fukushima disaster. To do so, the study applies a cointegration analysis and performs a vector error correction (VEC) variance decomposition by using quarterly data from Q1 1981 to Q4 2010 and from Q1 2011 to Q4 2015. The findings reveal that the absolute value of elasticities of oil consumption by some economic sectors reduced after this disaster because of increased dependency on oil consumption, which endangered energy security in the country. To raise energy self-dependency and energy security, Japan needs to diversify its energy supplies. Because renewable energy projects are mainly considered risky by banks and banks are reluctant to finance them, the paper introduces an innovative form of financing these projects: Hometown Investment Trust Funds, which was introduced and applied in Japan and in some other parts of Asia.
Farhad Taghizadeh-Hesary; Naoyuki Yoshino; Ehsan Rasoulinezhad. Impact of the Fukushima Nuclear Disaster on the Oil-Consuming Sectors of Japan. The Journal of Comparative Asian Development 2017, 16, 113 -134.
AMA StyleFarhad Taghizadeh-Hesary, Naoyuki Yoshino, Ehsan Rasoulinezhad. Impact of the Fukushima Nuclear Disaster on the Oil-Consuming Sectors of Japan. The Journal of Comparative Asian Development. 2017; 16 (2):113-134.
Chicago/Turabian StyleFarhad Taghizadeh-Hesary; Naoyuki Yoshino; Ehsan Rasoulinezhad. 2017. "Impact of the Fukushima Nuclear Disaster on the Oil-Consuming Sectors of Japan." The Journal of Comparative Asian Development 16, no. 2: 113-134.
This chapter assess the impact of crude oil price movements on two macroeconomic variables—gross domestic product (GDP) growth rate and the consumer price index inflation rate—in three economies: the United States and Japan (developed economies) and the People’s Republic of China (PRC) (emerging economy). These economies were chosen for this research because they are the world’s three largest oil consumers. The main objective of this research is to see whether these economies are still reactive to oil price movements. The results obtained suggest that the impact of oil price fluctuations on developed oil importers’ GDP growth is much milder than on the GDP growth of an emerging economy. On the other hand, however, the impact of oil price fluctuations on the PRC’s inflation rate was found to be milder than in the two developed economies that were examined.
Farhad Taghizadeh-Hesary; Naoyuki Yoshino; Abbas Assari-Arani. Economic Impacts of Oil Price Fluctuations in Developed and Developing Economies. Monetary Policy and the Oil Market 2016, 75 -91.
AMA StyleFarhad Taghizadeh-Hesary, Naoyuki Yoshino, Abbas Assari-Arani. Economic Impacts of Oil Price Fluctuations in Developed and Developing Economies. Monetary Policy and the Oil Market. 2016; ():75-91.
Chicago/Turabian StyleFarhad Taghizadeh-Hesary; Naoyuki Yoshino; Abbas Assari-Arani. 2016. "Economic Impacts of Oil Price Fluctuations in Developed and Developing Economies." Monetary Policy and the Oil Market , no. : 75-91.
This research evaluates the impact of oil price shocks on oil producing and consuming economies; we used a simultaneous equation framework for different economies with business relations. As expected, we found that oil producers (in this study, Iran and the Russian Federation) benefit from oil price shocks. However contrary to previous findings, they also benefit from the indirect effect through their trade partners. For oil-consuming economies, the effects are more diverse. In some economies, output falls in response to an oil price shock, while some others seem to be immune. Generally, those economies that trade more with oil producers gain indirect benefits via higher demand from oil producers. For instance, the Netherlands, Germany, France, Italy, the United States, the United Kingdom, and the People’s Republic of China get negative direct effects and positive indirect effects from oil producing economies. This is exactly the result that we anticipated. India has both negative effects directly and indirectly and seems to suffer more in a positive oil price shock. For Japan, Spain, Switzerland, and Turkey the results are reversed. They benefit from an oil shock directly and indirectly.
Farhad Taghizadeh-Hesary; Naoyuki Yoshino; Ghahraman Abdoli; Asadollah Farzinvash. Macroeconomic Impacts of Oil Price Fluctuations in a Trade Linked Case. Monetary Policy and the Oil Market 2016, 107 -129.
AMA StyleFarhad Taghizadeh-Hesary, Naoyuki Yoshino, Ghahraman Abdoli, Asadollah Farzinvash. Macroeconomic Impacts of Oil Price Fluctuations in a Trade Linked Case. Monetary Policy and the Oil Market. 2016; ():107-129.
Chicago/Turabian StyleFarhad Taghizadeh-Hesary; Naoyuki Yoshino; Ghahraman Abdoli; Asadollah Farzinvash. 2016. "Macroeconomic Impacts of Oil Price Fluctuations in a Trade Linked Case." Monetary Policy and the Oil Market , no. : 107-129.
This paper compares three methods of analyzing exchange rate regimes in East Asia: static analysis, conventional dynamic analysis, and dynamic transition analysis. First we provide quantitative results that both estimated parameters for Thailand and time intervals are applied symmetrically across the three approaches. Our comparable simulation results illustrate how these three analyses are mutually related. Comparisons across the three methods demonstrate limitations of the static and conventional dynamic analyses where exchange rate regimes remain unchanged over the analysis horizon. Moreover, we emphasize three advantages of the dynamic transition analysis over the static and conventional dynamic analyses in that shifts from the current regime to alternative regimes are contrasted with a benchmark case of maintaining the current regime over the analysis horizon.
Naoyuki Yoshino; Sahoko Kaji; Tamon Asonuma. Comparison of Static and Dynamic Analyses on Exchange Rate Regimes in East Asia. SSRN Electronic Journal 2015, 1 .
AMA StyleNaoyuki Yoshino, Sahoko Kaji, Tamon Asonuma. Comparison of Static and Dynamic Analyses on Exchange Rate Regimes in East Asia. SSRN Electronic Journal. 2015; ():1.
Chicago/Turabian StyleNaoyuki Yoshino; Sahoko Kaji; Tamon Asonuma. 2015. "Comparison of Static and Dynamic Analyses on Exchange Rate Regimes in East Asia." SSRN Electronic Journal , no. : 1.
Japan’s debt-to-gross domestic product (GDP) ratio is the highest among Organisation for Economic Co-operation and Development (OECD) countries. This paper will firstly answer the question of whether Japanese government debt is sustainable. Next, while the Domar condition and Bohn’s condition are often used in the literature to check whether a government’s debt situation is in a dangerous zone, this paper will show that the Domar condition is obtained only from the government budget constraint (namely the supply of government bonds) and does not take into account the demand for government bonds. A simple comparison of the interest rate and the growth rate of an economy using the Domar condition is not adequate to check the stability of a government’s budget deficit. Both the interest rate and the growth rate of the economy are determined endogenously in the model. Thirdly, this paper shows that Bohn’s condition satisfies the stability of the government budget in the long run by imposing constraints on the primary balance. However, Bohn’s condition does not achieve economic stability — even if the condition is satisfied, the recovery of the economy may not be achieved. This paper will propose a new condition that satisfies both the stability of the government budget and the recovery of the economy. The paper will shed light on these issues both theoretically and empirically. The empirical findings declare that in order to achieve fiscal sustainability based on the optimal fiscal policy rule provided in this paper, both sides of the Japanese government budget (expenditure and revenue) need to be adjusted simultaneously. Moreover, the results show that the decrease in government expenditure has to be to more than the increase in tax revenue.
Naoyuki Yoshino; Tetsuro Mizoguchi; Farhad Taghizadeh Hesary. Optimal Fiscal Policy Rule for Achieving Fiscal Sustainability: A Japanese Case Study. SSRN Electronic Journal 2015, 1 .
AMA StyleNaoyuki Yoshino, Tetsuro Mizoguchi, Farhad Taghizadeh Hesary. Optimal Fiscal Policy Rule for Achieving Fiscal Sustainability: A Japanese Case Study. SSRN Electronic Journal. 2015; ():1.
Chicago/Turabian StyleNaoyuki Yoshino; Tetsuro Mizoguchi; Farhad Taghizadeh Hesary. 2015. "Optimal Fiscal Policy Rule for Achieving Fiscal Sustainability: A Japanese Case Study." SSRN Electronic Journal , no. : 1.
This paper assesses the impact of crude oil price movements on two macro variables, the gross domestic product (GDP) growth rate and consumer price index inflation rate, in the developed economies of the United States and Japan, and an emerging economy, the People's Republic of China (PRC). These countries were chosen for this research because they are the world's three largest oil consumers. The main objective of this study is to see whether these economies are still reactive to oil price movements. The results obtained suggest that the impact of oil price fluctuations on developed oil importers’ GDP growth is much lower than on the GDP growth of an emerging economy. The main reasons for this lie in fuel substitution (higher use of nuclear energy, gas, and renewables), a declining population (for Japan), the shale gas revolution (for the United States), and strategic oil stocks and government-mandated energy efficiency targets in developed economies. All of these factors make developed economies more resistant to oil shocks. On the other hand, the impact of oil price movements on the PRC's inflation rate was found to be milder than in the two developed countries that were examined. The main cause for this is that the PRC experiences a larger forward shift in its aggregate supply due to higher growth, which allows it to avoid a massive increase in price levels following oil price shocks.
Farhad Taghizadeh-Hesary; Naoyuki Yoshino; Majid Mohammadi Hossein Abadi; Rosa Farboudmanesh. Response of macro variables of emerging and developed oil importers to oil price movements. Journal of the Asia Pacific Economy 2015, 21, 91 -102.
AMA StyleFarhad Taghizadeh-Hesary, Naoyuki Yoshino, Majid Mohammadi Hossein Abadi, Rosa Farboudmanesh. Response of macro variables of emerging and developed oil importers to oil price movements. Journal of the Asia Pacific Economy. 2015; 21 (1):91-102.
Chicago/Turabian StyleFarhad Taghizadeh-Hesary; Naoyuki Yoshino; Majid Mohammadi Hossein Abadi; Rosa Farboudmanesh. 2015. "Response of macro variables of emerging and developed oil importers to oil price movements." Journal of the Asia Pacific Economy 21, no. 1: 91-102.
Japan has reached the limits of conventional macroeconomic policies. In order to overcome deflation and achieve sustainable economic growth, the Bank of Japan (BOJ) recently set an inflation target of 2 per cent and implemented an aggressive monetary policy so this target could be achieved as soon as possible. Although prices started to rise after the BOJ implemented monetary easing, this may have been for other reasons, such as higher energy prices as a result of the depreciated Japanese yen. This paper shows that quantitative easing may not be able to stimulate the Japanese economy. Aggregate demand, which includes private investment, did not increase significantly in Japan with lower interest rates. Private investment displays this unconventional behaviour because of the uncertainty about the future and because Japan's population is ageing. The paper concludes that the remedy for Japan's economic policy is not to be found in its monetary policy.
Naoyuki Yoshino; Farhad Taghizadeh-Hesary. Effectiveness of the Easing of Monetary Policy in the Japanese Economy, incorporating Energy Prices. The Journal of Comparative Asian Development 2015, 14, 227 -248.
AMA StyleNaoyuki Yoshino, Farhad Taghizadeh-Hesary. Effectiveness of the Easing of Monetary Policy in the Japanese Economy, incorporating Energy Prices. The Journal of Comparative Asian Development. 2015; 14 (2):227-248.
Chicago/Turabian StyleNaoyuki Yoshino; Farhad Taghizadeh-Hesary. 2015. "Effectiveness of the Easing of Monetary Policy in the Japanese Economy, incorporating Energy Prices." The Journal of Comparative Asian Development 14, no. 2: 227-248.
Naoyuki Yoshino; Sahoko Kaji; Tamon Asonuma. Dynamic Effect of a Change in the Exchange Rate System: From a Fixed Regime to a Basket-Peg or a Floating Regime. SSRN Electronic Journal 2015, 1 .
AMA StyleNaoyuki Yoshino, Sahoko Kaji, Tamon Asonuma. Dynamic Effect of a Change in the Exchange Rate System: From a Fixed Regime to a Basket-Peg or a Floating Regime. SSRN Electronic Journal. 2015; ():1.
Chicago/Turabian StyleNaoyuki Yoshino; Sahoko Kaji; Tamon Asonuma. 2015. "Dynamic Effect of a Change in the Exchange Rate System: From a Fixed Regime to a Basket-Peg or a Floating Regime." SSRN Electronic Journal , no. : 1.
Naoyuki Yoshino; Sahoko Kaji; Tamon Asonuma. Dynamic Shift to a Basket-Peg or Floating Regime in East Asian Countries in Response to the People's Republic of China's Transition to a New Exchange Rate Regime. SSRN Electronic Journal 2015, 1 .
AMA StyleNaoyuki Yoshino, Sahoko Kaji, Tamon Asonuma. Dynamic Shift to a Basket-Peg or Floating Regime in East Asian Countries in Response to the People's Republic of China's Transition to a New Exchange Rate Regime. SSRN Electronic Journal. 2015; ():1.
Chicago/Turabian StyleNaoyuki Yoshino; Sahoko Kaji; Tamon Asonuma. 2015. "Dynamic Shift to a Basket-Peg or Floating Regime in East Asian Countries in Response to the People's Republic of China's Transition to a New Exchange Rate Regime." SSRN Electronic Journal , no. : 1.
Naoyuki Yoshino; Farhad Taghizadeh Hesary. Japan's Lost Decade: Lessons for Other Economies. SSRN Electronic Journal 2015, 1 .
AMA StyleNaoyuki Yoshino, Farhad Taghizadeh Hesary. Japan's Lost Decade: Lessons for Other Economies. SSRN Electronic Journal. 2015; ():1.
Chicago/Turabian StyleNaoyuki Yoshino; Farhad Taghizadeh Hesary. 2015. "Japan's Lost Decade: Lessons for Other Economies." SSRN Electronic Journal , no. : 1.
“Abenomics” refers to the economic policies advocated by Shinzo Abe, who became prime minister of Japan for a second time when his Liberal Democratic Party won an overwhelming majority in the general election in December 2012. Abenomics is distinguished by a set of policies comprising “three arrows”: (1) aggressive monetary policy, (2) fiscal consolidation, and (3) a growth strategy. The Japanese economy faces an aging population and increasing social welfare expenses. No other country has experienced such rapid growth of the number of retired people. In this article we will explain all three aspects of Abenomics, examine the current state of the Japanese economy, and explore what further remedies may be required if Japan is to recover from its long-term deflation. We will look at such proposals as hometown investment trust funds, postponement of the retirement age by introducing a flexible wage rate system, and changing the pension system to 401(k) style instruments.
Naoyuki Yoshino; Farhad Taghizadeh-Hesary. An Analysis of Challenges Faced by Japan’s Economy and Abenomics. The Japanese Political Economy 2014, 40, 37 -62.
AMA StyleNaoyuki Yoshino, Farhad Taghizadeh-Hesary. An Analysis of Challenges Faced by Japan’s Economy and Abenomics. The Japanese Political Economy. 2014; 40 (3):37-62.
Chicago/Turabian StyleNaoyuki Yoshino; Farhad Taghizadeh-Hesary. 2014. "An Analysis of Challenges Faced by Japan’s Economy and Abenomics." The Japanese Political Economy 40, no. 3: 37-62.
The article assesses the response of Tehran stock prices to exogenous monetary policy shocks, using a vector error correction model for the 1998Q1–2013Q2 period. Monetary policy is transmitted to stock market price through three routes: money by itself, exchange rate and inflation. Our result in this paper points to the fact that stock prices increase persistently in response to an exogenous easing monetary policy. Variance deposition results show that, after ten periods, the forecast error variance of more than 53 per cent of the Tehran Stock Exchange Price Index (TEPIX) can be explained by the exogenous shocks to the US dollar–Iranian rial exchange rate, while this ratio for exogenous shocks to the Iranian real gross domestic product was only 17 per cent. The article argues that such evidence can be accounted for by an endogenous response of the stock prices to the monetary policy shocks.
Naoyuki Yoshino; Farhad Taghizadeh-Hesary; Ali Hassanzadeh; Ahmad Prasetyo. Response of Stock Markets to Monetary Policy: The Tehran Stock Market Perspective. The Journal of Comparative Asian Development 2014, 13, 517 -545.
AMA StyleNaoyuki Yoshino, Farhad Taghizadeh-Hesary, Ali Hassanzadeh, Ahmad Prasetyo. Response of Stock Markets to Monetary Policy: The Tehran Stock Market Perspective. The Journal of Comparative Asian Development. 2014; 13 (3):517-545.
Chicago/Turabian StyleNaoyuki Yoshino; Farhad Taghizadeh-Hesary; Ali Hassanzadeh; Ahmad Prasetyo. 2014. "Response of Stock Markets to Monetary Policy: The Tehran Stock Market Perspective." The Journal of Comparative Asian Development 13, no. 3: 517-545.