Wage-Price Dynamics and Structural Reforms in Japan /

Structural reforms in the liquidity trap need not be deflationary. This paper develops a simple framework to study the role that key characteristics of Japan's labor and product markets-labor-market duality and weak corporate governance-play in generating unfavorable wage-price dynamics. The mo...

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मुख्य लेखक: Porcellacchia, Davide
स्वरूप: पत्रिका
भाषा:English
प्रकाशित: Washington, D.C. : International Monetary Fund, 2016.
श्रृंखला:IMF Working Papers; Working Paper ; No. 2016/020
ऑनलाइन पहुंच:Full text available on IMF
विवरण
सारांश:Structural reforms in the liquidity trap need not be deflationary. This paper develops a simple framework to study the role that key characteristics of Japan's labor and product markets-labor-market duality and weak corporate governance-play in generating unfavorable wage-price dynamics. The model allows a discussion of whether and in what form structural reforms may contribute to Japan's short-run goal of reflating the economy. It finds that boosting inflation with structural reforms implies an unusual trade-off with employment, that is an inverted Phillips curve. Simultaneous implementation of labor-market and product-market reforms is most effective in terms of reflating the economy.
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भौतिक वर्णन:1 online resource (26 pages)
स्वरूप:Mode of access: Internet
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