Why are Japanese interest rates so low?
I am doing a presentation on the Yen Carry trade. Can you offer any input/Resources?
We will be discussing breifly why Japan's interest rates got so low. Does the savings rate have anything to do with the rates?
- spitfireddLv 41 decade agoFavorite Answer
Read up on the Crash in 1989. The Nikkei went from 39000 to 7800 over a 16 year period (a long slow death). It is currently at 9400.
The central bank of Japan lowered interest rates to zero to spur economic growth.
I would read up on:
ZIRP (Zero Interest Rate Policy)
Modern Economic History of Japan
The Crash of the Nikkei 225
Bank of Japan - Reseach Paper Page (very technical)
International Monetary Fund
the search function on this site is horrible
Wikipedia is a good source but be careful because it is written by anyone and you may not get accurate data.
I would start at those 2 places first.
Also savings rates have nothing to do with this.
- what?Lv 61 decade ago
it's because they've been in a severe recession for the last two decades.