IDEAS home Printed from https://ideas.repec.org/p/esj/esridp/079.html
   My bibliography  Save this paper

Can Economics Explain Deflation in Japan? (in Japanese)

Author

Listed:
  • HARADA Yutaka
  • NAKATA Kazuyoshi

Abstract

Deflation continues in Japan. The domestic corporate goods price index, excluding the effect of the consumption tax, has continuously declined since 1992. Moreover, the consumer price index (excluding fresh food) has declined since 1998. Why, then, does deflation continue? What do economists think of deflation? The purpose of this paper is to abstract the mechanism of price determination from Japanese macroeconomics textbooks, and to judge whether those mechanism can explain Japanese deflation. The basic conclusions of this paper are as follows. The mechanism of price determination is clearly explained in Japanese textbooks, which emphasize the short-term determination mechanism based on aggregated demand-aggregated supply curves. The mechanism says that price is explained by the money supply, by the gap between demand and supply, by expected inflation, and so on, and we empirically proved that the mechanism can explain real Japanese price fluctuations.

Suggested Citation

  • HARADA Yutaka & NAKATA Kazuyoshi, 2003. "Can Economics Explain Deflation in Japan? (in Japanese)," ESRI Discussion paper series 079, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esj:esridp:079
    as

    Download full text from publisher

    File URL: http://www.esri.go.jp/jp/archive/e_dis/e_dis079/e_dis079.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:esj:esridp:079. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: HORI nobuko (email available below). General contact details of provider: https://edirc.repec.org/data/esrgvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.