Since 2014
Does high yield spread dampen economic growth? : the case of US-Japan
International Journal of Finance & Banking Studies
View Archive Info| Field | Value | |
| Title |
Does high yield spread dampen economic growth? : the case of US-Japan
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| Creator |
Kurihara, Yutaka; Professor, Aichi University
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| Subject |
International Finance, Economics
economic growth; interest rate; term structure; yield spread |
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| Description |
This article focuses on the relationship between the United States' and Japan's yield spread of interest rates and economic growth in Japan. The yield spread is defined in this article as the difference between the Japanese government bond yield minus the US government bond yield. Some studies have tackled this issue and found a negative relationship between the yield spread and economic growth; however, recent studies have shown no or a weak relationship. This problem has not yet consensus in spite of its importance. As the Japanese interest rate has been quite low since the adoption of the zero interest rate policy at the end of 1990s, the situation may change the results. The empirical results show that reliability of yield spread as a leading indicator of output growth exists in Japan; however, term structure of interest rate is not related to economic growth.
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| Publisher |
SSBFNET
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| Contributor |
Zengin Foundation for Studies on Economics and Finance
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| Date |
2014-04-18
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/309
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| Source |
International Journal of Finance & Banking Studies (ISSN: 2147- 4486); Vol 3, No 2 (2014): April; 1-9
2147-4486 |
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| Language |
eng
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| Relation |
http://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/309/311
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