Understanding the Costs of Deflation in the Japanese Context
Download or Read eBook Understanding the Costs of Deflation in the Japanese Context PDF written by Mr.Taimur Baig and published by International Monetary Fund. This book was released on 2003-11-01 with total page 28 pages. Available in PDF, EPUB and Kindle.
Author | : Mr.Taimur Baig |
Publisher | : International Monetary Fund |
Total Pages | : 28 |
Release | : 2003-11-01 |
ISBN-10 | : 9781451875065 |
ISBN-13 | : 1451875061 |
Rating | : 4/5 (65 Downloads) |
Book Synopsis Understanding the Costs of Deflation in the Japanese Context by : Mr.Taimur Baig
Book excerpt: This paper examines the cost of deflation in the context of Japan's ongoing deflationary episode. The impact of deflation owing to the zero interest rate bound on monetary policy, wage rigidity, redistribution of wealth from debtor to creditor, and inflexibilities in the financial sector are examined. It is seen that the generalized decline in the Japanese price level, however gradual or mild, has substantially exacerbated the economy's adjustment process under already difficult economic conditions.