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Deflation and Japan's Economy.
(From Journal of Japanese Trade & Industry (JJTI))
Byline: Itoh Motoshige
Deflation, an Economic Malady Since the end of the 1990s, Japan's economy has been mired in severe deflation. No other industrialized country has undergone a similar experience since the Great Depression of the 1930s. As will be argued in this paper, the common remedies of economic policies are without effect in deflationary conditions. It is for this reason that Japan's experience has attracted the interest of many economists. Further, as the rate of price increase tends to be falling in most of the world's leading economies, debate is focusing on the danger of sliding into the ...
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