01752cas a2200253 a 4500 AALejournalIMF001050 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451855890 1018-5941 BD-DhAAL BD-DhAAL Bayoumi, Tamim. A Peek Inside the Black Box : The Monetary Transmission Mechanism in Japan / Tamim Bayoumi, James Morsink. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper uses vector autoregressions to examine the monetary transmission mechanism in Japan. The empirical results indicate that both monetary policy and banks' balance sheets are important sources of shocks, that banks play a crucial role in transmitting monetary shocks to economic activity, that corporations and households have not been able to substitute borrowing from other sources for a shortfall in bank borrowing, and that business investment is especially sensitive to monetary shocks. We conclude that policy measures to strengthen banks are probably a prerequisite for restoring the effectiveness of the monetary transmission mechanism. Mode of access: Internet Morsink, James. IMF Working Papers; Working Paper ; No. 1999/137 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/137/001.1999.issue-137-en.xml IMF e-Library