TY - BOOK ID - 78437551 TI - Policy Uncertainty in Japan AU - Arbatli Saxegaard, Elif. AU - Davis, Steven. AU - Ito, Arata. AU - Miake, Naoko. AU - Saito, Ikuo. PY - 2017 SN - 1484302443 9781484302446 148430067X 9781484300671 1484302362 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Japan KW - al-Yābān KW - Giappone KW - Government of Japan KW - Iapōnia KW - I︠A︡ponii︠a︡ KW - Japam KW - Japani KW - Japão KW - Japon KW - Japonia KW - Japonsko KW - Japonya KW - Jih-pen KW - Mư̄ang Yīpun KW - Nihon KW - Nihon-koku KW - Nihonkoku KW - Nippon KW - Nippon-koku KW - Nipponkoku KW - Prathēt Yīpun KW - Riben KW - State of Japan KW - Yābān KW - Yapan KW - Yīpun KW - Zhāpān KW - Япония KW - اليابان KW - يابان KW - 日本 KW - 日本国 KW - Economic conditions KW - Econometric models. KW - Jepun KW - Yapon KW - Yapon Ulus KW - I︠A︡pon KW - Япон KW - I︠A︡pon Uls KW - Япон Улс KW - Exports and Imports KW - Financial Risk Management KW - Foreign Exchange KW - Public Finance KW - Macroeconomics KW - Information, Knowledge, and Uncertainty: General KW - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data) KW - Monetary Policy KW - Fiscal Policy KW - Trade Policy KW - International Trade Organizations KW - Financial Crises KW - Development Planning and Policy: Trade Policy KW - Factor Movement KW - Foreign Exchange Policy KW - Debt KW - Debt Management KW - Sovereign Debt KW - Economic & financial crises & disasters KW - Currency KW - Foreign exchange KW - International economics KW - Public finance & taxation KW - Financial crises KW - Fiscal policy KW - Exchange rate policy KW - Trade policy KW - Public debt KW - Global financial crisis of 2008-2009 KW - Commercial policy KW - Debts, Public KW - Global Financial Crisis, 2008-2009 UR - https://www.unicat.be/uniCat?func=search&query=sysid:78437551 AB - We develop new economic policy uncertainty (EPU) indices for Japan from January 1987 onwards building on the approach of Baker, Bloom and Davis (2016). Each index reflects the frequency of newspaper articles that contain certain terms pertaining to the economy, policy matters and uncertainty. Our overall EPU index co-varies positively with implied volatilities for Japanese equities, exchange rates and interest rates and with a survey-based measure of political uncertainty. The EPU index rises around contested national elections and major leadership transitions in Japan, during the Asian Financial Crisis and in reaction to the Lehman Brothers failure, U.S. debt downgrade in 2011, Brexit referendum, and Japan’s recent decision to defer a consumption tax hike. Our uncertainty indices for fiscal, monetary, trade and exchange rate policy co-vary positively but also display distinct dynamics. VAR models imply that upward EPU innovations foreshadow deteriorations in Japan’s macroeconomic performance, as reflected by impulse response functions for investment, employment and output. Our study adds to evidence that credible policy plans and strong policy frameworks can favorably influence macroeconomic performance by, in part, reducing policy uncertainty. ER -