Source: Ministry of Economy, Trade and Industry). Monetary base (adjusted for reserve ratio, average amount outstanding, seasonally adjusted. Source: Bank of Japan home page). Nominal effective exchange rate (Source: Bank of Japan home page). The Nikkei stock average (monthly average of daily figures. Source: Bloomberg). Consumer price inflation rate (year-on-year rate of change, all items excluding food and energy.
Source: Ministry of Internal Affairs and Communications). 8  BIS central bankers’ speeches  Estimated impulse response showed that, by an exogenous increase in the monetary base, production increased, stock prices rose, and the foreign exchange rate depreciated. The standard error bands were wide to a certain degree, and some included zero in the confidence interval.