In 2001, the Bank of Japan (BOJ) adopted "quantitative monetary easing". Since short term interest rates became almost zero, the operating target of monetary policy was changed from interest rate to "Reserve at the BOJ". Honda et al [1] showed that the reserve at the BOJ in (2001,2006) is effective to the economy through a transmission path in a stock market, where impulse responses in VAR model are used in monthly data of Japan. Decomposing money into transaction demand and precautionary one and estimating precautionary one, Morita and Miyagawa [2] tried to show that reserve at the BOJ makes GDP increased through the stock market in quarterly data. In this paper, the method of estimating precautionary demand in Japan [2] is extensively improved and applied to the case of USA. Using precautionary demand estimated in the whole interval (1980m01, 2012m02), the quantitative easing at FRB is shown to be effective during the period (2006m06, 2010m02).
展开▼
