01537cas a2200241 a 4500 AALejournalIMF008533 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451875065 1018-5941 BD-DhAAL BD-DhAAL Baig, Taimur. Understanding the Costs of Deflation in the Japanese Context / Taimur Baig. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (27 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2003/215 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/215/001.2003.issue-215-en.xml IMF e-Library