Additional information is available for the following registered author(s):

• Annabelle Mourougane

This paper examines the relationship between the output gap and inflation in Japan by estimating Phillips curves and testing for changes since the advent of low inflation and/or the stabilisation of the rate of change of inflation. The work provides empirical support for the hypothesis of a change in the relationship between output and inflation in an environment of low inflation for Japan. In particular, there is evidence that the slope of the Phillips curve becomes flatter when the inflation rate is below ½ per cent (quarter-on-quarter, non-annualised) and also that there has been a break in the relationship between demand pressures and inflation in Japan since the beginning of the 1990s. Evidence is also found that the relationship changes when the inflation rate is either rising rapidly or falling sharply. At such times, changes in demand pressure have stronger effects on inflation. These results are robust to a wide range of specifications, including corrections for the ...

La relation entre indicateurs de demande et inflation change-t-elle dans un contexte de basse ou de stabilité de l’inflation? : Le cas du japon

Cette étude examine la relation entre l’écart de croissance et l’inflation au Japon en estimant des courbes de Phillips et teste si cette relation se modifie dans un contexte d’inflation basse et/ou de stabilité de l’inflation. Les estimations présentées constituent un support empirique relativement détaillé de l’hypothèse d’un changement dans la relation entre indicateur de demande et inflation dans un environnement de basse inflation pour le Japon. En particulier, la pente de la courbe de Phillips s’aplatit quand le taux d’inflation est en dessous d’½ pour cent (taux trimestriel, non annualisé) et il existe un break dans la relation entre indicateur de demande et inflation au Japon au début des années 90. La relation apparaît aussi se modifier quand le taux d’inflation augmente ou baisse rapidement. Durant de telles périodes, les mouvements dans les indicateurs de demande ont un effet plus fort sur l’inflation. Les résultats obtenus sont robustes à la correction des hausses de ...

Download Info

To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

Publisher Info

Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 379.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length:
Date of creation: 02 Feb 2004
Date of revision:
Handle: RePEc:oec:ecoaaa:379-en

Contact details of provider:
Postal: 2 rue Andre Pascal, 75775 Paris Cedex 16
Email:
Web page: http://www.oecd.org
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: ().

Related research

Keywords: Phillips curve Japan Japon asymmetry low inflation environment courbe de Phillips asymétrie environnement de basse inflation

Find related papers by JEL classification:
C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models
E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

This paper has been announced in the following NEP Reports:

• NEP-ALL-2005-08-13 (All new papers)
• NEP-CBA-2005-08-13 (Central Banking)
• NEP-MAC-2005-08-13 (Macroeconomics)
• NEP-MON-2005-08-13 (Monetary Economics)

Did you know? IDEAS uses the data collected within the RePEc project, the largest online bibliographic database in Economics.

This page was last updated on 2008-11-17.