Understanding the Costs of Deflation in the Japanese Context /

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 ex...

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Détails bibliographiques
Auteur principal: Baig, Taimur
Format: Revue
Langue:English
Publié: Washington, D.C. : International Monetary Fund, 2003.
Collection:IMF Working Papers; Working Paper ; No. 2003/215
Accès en ligne:Full text available on IMF
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Résumé: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.
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Description matérielle:1 online resource (27 pages)
Format:Mode of access: Internet
ISSN:1018-5941
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