Hirakata, Naohisa; Iwasaki, Yuto; Kawai, Masahiro - East Asian Bureau of Economic Research (EABER) - 2014
rates in two developed economies, the United States (US) and Japan. We demonstrate that the assumed asymmetric trade … supply shock in the PRC. Specifically, Japan is under a greater deflationary pressure than the US because of its vertical … trade specialization vis-à-vis the PRC and the PRC’s USdollar- pegged regime. This outcome suggests that, even though Japan …