Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
975828 | Pacific-Basin Finance Journal | 2006 | 16 Pages |
Abstract
When the Japanese economy experienced a serious financial crisis in the late 1990s, the government attempted to promptly resolve this crisis by injecting public funds into bank capital, requiring these banks to compose and implement a rehabilitation plan. This paper empirically investigates whether this plan (the Business Revitalization Plan) worked effectively, emphasizing the inconsistency between strengthening the soundness of the banking industry (preventing bank failures) and expanding credit supply (improving macroeconomy). We present empirical evidence on this inconsistency and argue that the government failed to promptly resolve the serious financial crisis in Japan due to this reason.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Katsutoshi Shimizu,