A1623
Title: Yield curve control policy in Japan: A functional error-correction model approach
Authors: Yoosoon Chang - Indiana University (United States)
Joon Park - Indiana University (United States)
Mototsugu Shintani - University of Tokyo (Japan) [presenting]
Abstract: During the period of unconventional monetary policy, the Bank of Japan conducted the quantitative and qualitative monetary easing policy (QQE) from April 2013 to March 2024. In September 2016, the Bank of Japan introduced the QQE with yield curve control, which was intended to stimulate the economy by flattening the yield curve. In the analysis, a recently developed functional time series method is employed to study how the shape of the yield curve evolved in Japan in response to the introduction of unconventional monetary policy and evaluate its effectiveness.
