Asset-liability-matrix analysis derived from the flow-of-funds accounts

The bank of Japan's quantitative monetary policy examined

Kazusuke Tsujimura, Masako Mizoshita

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

The first purpose of this paper is to present the compilation procedure of the Asset-Liability-Matrix (ALM) from the Flow-of-Funds (FOF) accounts in the balance sheet format that is widely available in IMF member countries. The introduction of ALM into the framework of FOF analysis enables us to utilize the affluent assets of input-output analysis, notably the concept of Leontief inverse. The second purpose of this article is to demonstrate the application of ALM to the examination of the quantitative monetary policy introduced by the Bank of Japan (BOJ) in March 2001. It can be said, as a conclusion, that there was a tactical error in the quantitative monetary policy adopted by BOJ in terms of the combination of money market operations. We believe that the ALM framework of FOF analysis is a powerful and practical device to fulfil this kind of examination.

Original languageEnglish
Pages (from-to)51-67
Number of pages17
JournalEconomic Systems Research
Volume15
Issue number1
DOIs
Publication statusPublished - 2003 Mar

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monetary policy
liability
assets
bank
Japan
matrix
input-output analysis
money market
IMF
balance sheet
examination
analysis
Flow of funds
Liability
Assets
Bank of Japan
Monetary policy

Keywords

  • Asset-liability-matrix
  • Central banking
  • Flow-of-funds
  • Quantitative monetary policy

ASJC Scopus subject areas

  • Geography, Planning and Development

Cite this

Asset-liability-matrix analysis derived from the flow-of-funds accounts : The bank of Japan's quantitative monetary policy examined. / Tsujimura, Kazusuke; Mizoshita, Masako.

In: Economic Systems Research, Vol. 15, No. 1, 03.2003, p. 51-67.

Research output: Contribution to journalArticle

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