This chapter assesses the potential for reform in North Korea, and considers the lessons learned from economic reform and transition in China, the Soviet Union, and Central Europe. We focus in particular on the importance of reforms in the financial regime, and argue that in the absence of a...

Interest rate targeting is widely used by central banks to pursue price stability; however, the variation in inflation policy outcomes between central banks such as the Federal Reserve and the Bank of Japan despite a common policy instrument framework suggests interest- targeting has...

The Bank of Japan permitted a ten-year period of deflation (1995-2005) which appears to have ended in 2006. The deflation, as well as the preceding disinflation, adversely affected the financial and real sectors of the economy that in turn, made it difficult to recover from the collapse of asset...