Did the low interest rates encourage growth

Reference no: EM131144810

Box 11-1 investigates the case of the liquidity trap in Japan, showing that interest rates have been virtually zero repeatedly in the late 1990s. Did these low interest rates manage to stimulate economic growth rates? Go to www.stat.go.jp/english . Click on "Statistics" and scroll down to "Japan Statistical Yearbook." Click on "National Accounts" and download 3-1B [Gross Domestic Product (Expenditure Approach) in Real Terms (Chain-linked Method)]. In EXCEL, transform the series to show percentage change from last year. [i.e., replace 1995 RGDP with change from last year: (1995 RGDP-1994 RGDP)/1994 RGDP.] Graph this series for the period since 1995. Compare the graph you obtained with Figure 1 in Box 11-1. Did the low interest rates encourage growth?

Reference no: EM131144810

Questions Cloud

Marketing-reposition product for more universal appeal : Marketing: What is it about some very successful, ages-old products like Twinkies, Spam, Slim Jims, Spaghetti-O's and Tang that engender such strong feelings? Share your thoughts about such a product you've encountered and what you think the company ..

Examine the results from the employee survey : Examine the results from the employee survey. What is the data saying about the health of the organization? How might you celebrate high engagement scores and improve low engagement scores?

Organizations have difficult time listening : Why do you think that people in organizations have a difficult time listening? What can organizations do to increase the degree to which their leaders listen to their followers?

Review the barriers to communication : Review the barriers to communication (filtering, emotions, information overload, and differing perceptions). Provide at least one strategy for counteracting or overcoming each one of these barriers

Did the low interest rates encourage growth : Graph this series for the period since 1995. Compare the graph you obtained with Figure 1 in Box 11-1. Did the low interest rates encourage growth?

What considerations exist for entering into an ijv in china : Your supervisor was scheduled to present a seminar called Strategic Implementation in China, but he is now unable to fulfill this commitment and has asked you to take his place. What special considerations exist for entering into an IJV in China?

Difference in annual profit and fixed costs is maximized : A real estate company is considering several different hotel projects. They need to build at least 2 hotels, and there are 5 locations under consideration. Formulate a mathematical program that can be used to determine the number of rooms to build at..

Which best describes br chicken value proposition : You are the marketing research director of a medium-sized manufacturing firm and you would like to engage an outside marketing research firm to conduct field interviews. Which of the following categories of marketing research firms should you use?

Determine the optimal strategy for game : The game 3-5-7 requires one of the players to write down 3, 5, or 7, and the other player to shout 3, 5, or 7. If the shouter is correct he wins the product of the two numbers from the writer, and if the shouter is incorrect he pays the writer the su..

User Account

All Pages