Akira MATSUMOTO (akiram@mail.ucr.edu)
Tue, 19 Oct 1999 10:43:58 -0700
Dear Sirs
I 'd like to point out the followings briefly because I have no tiome to
comment in detail.
When we think about the present Japanese banking crisis, I guess we should
consider the following theoretical problem.
(1) Is Money supply, that is lending by bank exogenous or endogenous ? If we
stand on the former, the Basel Accord, and the bad loan would have nagative
effects to the Japanese bank behavier. And this led to the reduction of
lending and the recent reccession. If we stand on the latter, the reason of
the recent scale-down of lending is the recession itself. Consequently bank
lending couldn't increase unless the real economic sector recover.
(2) We should think of the structual problem in Japanese banking system.
This problem should also bring about the recent financial revolution of
Japan and the meger movement of Japanese mager banks. I guess it would be
relevant to the accumulation of money captal.
bye
Best Wish
Akira Matsumoto
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MATSUMOTO, Akira
Visiting Scholar
Department of Economics,
University of California, Riverside
1150 University Avenue
Riverside, CA 92521-0427 USA
Phone 909-787-5037x1575 or X1570
Fax 909-787-5685
Email: akiram@mail.ucr.edu
________________________
Associate Professor on Money and Banking
Department of Comprehensive Policy Making
Faculty of Law & Letters
EHIME University
Matsuyama, Ehime
790-8577, Japan
Tel:+81-89-927-9237(office)
FaX: +81-89-927-8916
E-mail: amatsu@ll.ehime-u.ac.jp
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