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Japan Deflation Issue

Contents

Introduction
I. Current overview of Japanese Economy

II. Japan's Deflation since the 1990s

III. Why Is Deflation a Problem?

IV. Japan's General Price Deflation since the 1990s and the Debt Burden of Borrowers

V. The Negative Financial Accelerator in Japan since the 1990s

VI. Policies to Deal with the Problems

References

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Introduction
There is much confusion in popular discussion of Japan's deflation and associated economic problems. This confusion tends to arise from a failure to distinguish between three related, but different phenomena: the stagnation of the real side of the economy, the deflation of general prices, and the deflation of asset prices. The deflation of general prices has certainly persisted since the mid- or late 1990s, depending on the price index one looks at. However, the extent of the price decline has been mild. The cumulative decline in the consumer price index (CPI) since its peak......


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Approximate Word Count: 4389
Approximate Pages: 18 (250 words per double-spaced page)

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