Price stability and Japanese monetary policy
AbstractFor most of the time since 1995, the Japanese price level has declined. Since early 1999, short-term interest rates have mostly remained near zero. Also, starting in 2001, the excess reserves held by banks have risen dramatically. Many observers have concluded that central banks are powerless to end deflation when short-term interest rates are near zero. This paper argues that such a pessimistic conclusion is unwarranted.
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Bibliographic InfoPaper provided by Federal Reserve Bank of Richmond in its series Working Paper with number 04-01.
Date of creation: 2004
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-04-04 (All new papers)
- NEP-MAC-2004-04-04 (Macroeconomics)
- NEP-MON-2004-04-04 (Monetary Economics)
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