Browsing by Author "Komura, Chikara"
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Item Money and Income Causality in Japan Under the Flexible Exchange Rate Regime: 1971-1983(Center for Economic Research, Department of Economics, University of Minnesota, 1986-06) Komura, ChikaraThe paper examines Granger-causal relationships between money and income and its components in Japan under the flexible exchange rate regime. Through Sims's test and the Granger-Sargent test, M2CD and both GNP and real GNP appear to be in a bidirectional feedback relationship, while the GNP deflator is unidirectionally causal to M2CD. The findings conform to Mundell's theory and the liberalization of financial capital flows in December 1980. Analytical results are also confirmed with the impulse response based on the three-variate autoregressive model.Item Optimal Choice of Monetary Policy Instruments: An Optimal Control Simulation With Var for Japan(Center for Economic Research, Department of Economics, University of Minnesota, 1986-01) Komura, ChikaraThe paper analyzes the effective method of monetary control by estimating a vector autoregressive model of three variables, GNP, money supply, and short-term interest rates, and conducting dynamic optimal control simulation for Japan. The result indicates that active monetary control with any monetary policy instruments is better than passive monetary control which keeps certain monetary instruments constant. Among active monetary policy, money supply control turns out to be better than interest rate control. Yet, it appears to be more feasible to follow active interest rate control.