Monetary and Economic Studies Vol.9, No.1 / March 1991

The Information Content of Financial and Economic Variables: Empirical Tests of Information Variables in Japan

Kengo Kato

The main topic of this paper is "information variables" (or "indicators") of monetary policy, which work as criteria for setting the direction of monetary policy. After briefly surveying the notion and candidates of information variables, according to the studies mainly in the United States, empirical tests using Japan's data are conducted. It can be said that some information variables seem to be useful, but the results are mixed in general.

Views expressed in the paper are those of the authors and do not necessarily reflect those of the Bank of Japan or Institute for Monetary and Economic Studies.

Copyright © 1991 Bank of Japan All Rights Reserved.

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