・表題：Effects of monetary and fiscal policy interactions on regional employment: Evidence from Japan
The objective of this study is to examine the effects of the interaction between unconventional monetary policy and fiscal stimulus on regional employment in Japan using a mixed vector autoregressions (VARs)/event study approach. Our empirical findings first show that employment recovery was salient in western Japan rather than the Tokyo metropolitan area, contrary to some criticism on the Abenomics policy. This suggests that when it comes to employment, rural regions reaped more benefit from the policy interaction than the country's major economic hub. Second, although we confirm employment recovery for female employees in all regions, we do not observe such a trend among male employees, implying that the policy interaction might not increase the number of regular workers, which supports the phenomenon observed in the entire country. Finally, the quantitative effects of the policy interaction are not larger than those of past fiscal stimuli regardless of the region, implying the policy interaction was not a silver bullet for employment recovery in the short run, despite its scale.
Monetary-fiscal policy interaction under secular stagnation; regional employment; a mixed vector autoregression/event study approach
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