Impacts of Changing Crude Oil Prices and Macroeconomic Conditions on Short-Term Output Fluctuations in Japan

摘要

Applying the monetary policy function (Romer 2000, 2006; Taylor 2001), this article reveals that a 10 percent rise in the real crude oil price is expected to reduce Japan's real gross domestic product (GDP) by 0.19 percent and that increased government spending as a percent of the GDP, a higher real stock price, real appreciation of the yen, a lower world real interest rate, and a lower expected inflation rate would raise real output for Japan.