Deflation

BoJ's Nishimura sees no need for liquidity cut

Kiyohiko Nishimura, one of the Bank Japan's nine policy board members, sees no need to end the bank's super-loose monetary policy and cut its liquidity reserve target any time soon even as the country shows signs of pulling out of its deflationary cycle,…

Good/bad deflation and Japanese economic recovery

The Discussion Paper "Good deflation/bad deflation and Japanese economic recovery" says economic history suggests that technological progress can go hand in hand with general deflation. It finds that short-run shocks to Japan's relative price structure…

Tanigaki says Japan's economy recovering

Japanese Finance Minister Sadakazu Tanigaki reiterated on Thursday 5 May that the country's consumers are powering economic recovery and vowed to press on with fiscal reforms, although moderate deflation continued to pose a problem.

More work needed on deflation, says Tanigaki

Japan's Finance Minister Sadakazu Tanigaki told a press conference on Friday 7 January that more effort is needed to stop Japan's falling consumer prices and pledged to continue cooperating with the Bank of Japan to end deflation.

Japan's deflation may not end in 2005 says Haru

Bank of Japan policy maker Hidehiko Haru said on Thursday 25 November that Japan's deflation may not end in the fiscal year that starts April 1, 2005, possibly forcing the Bank of Japan to maintain its zero-rate policy the following year and beyond.

Why the Bank of Japan keeps on doing nothing

For pretty much all of 2004, the Bank of Japan has done nothing. And looking ahead to 2005, it's not expected to do a whole lot more, this article suggests. That the BOJ isn't having a serious discussion of deflation ending anytime soon throws cold water…

BoJ paper on deflationary traps

This Bank of Japan discussion paper provides a theoretical overview of monetary and fiscal policy with the potential to engineer an exit from a deflationary trap, which the author defines as sustained deflation in the presence of zero interest rates.

Price stability and Japanese monetary policy

Many observers have concluded that central banks are powerless to end deflation when short-term interest rates are near zero. This Bank of Japan Discussion Paper by Robert Hetzel, Vice President of the Research Department, Federal Reserve Bank of…

Comments on Price stability & Japanese mon policy

This Bank of Japan Discussion Paper summarises the authors' main points of agreement and disagreement with respect to the proposal written by Dr Hetzel. The authors agree with Dr Hetzel's proposal on four points but disagree with the proposal on three…

Japan 'half way' to overcoming deflation

While deflation has shown signs of easing in Japan, rising raw material prices still haven't affected consumer goods, signalling that price declines will continue, Japan's Cabinet Office said in its white paper on the economy.

FOMC minutes, 4 May, show worries over inflation

Minutes from the Federal Reserve's 4 May FOMC meeting released on 1 July showed that nearly two months before the Fed raised short-term interest rates on Wednesday, some board members made it clear that they were more worried about inflation than Alan…

Government and BOJ to co-op on deflation

The Japanese Government and central bank will work together to end deflation and support a recovery in the world's second-largest economy, Finance Minister Sadakazu Tanigaki told Asian counterparts in South Korea.

BOJ's Fukui sees hope for prices

The governor of the Bank of Japan, Toshihiko Fukui, said on Sunday 2 May that he saw hope for ending six years of falling prices as early as the end of the current fiscal year, which began April 1.

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