This paper examines Japan's experience in the first half of the 1990s to shed some light on several issues that arise … deflationary episode? We conclude that Japan's sustained deflationary slump was very much unanticipated by Japanese policymakers … the economy fell off significantly. Based on all these considerations, we draw the general lesson from Japan's experience …

-arbitrage" models of the term structure for the United States and Japan. There is some evidence that central bank communications can …

monetary easing" recently undertaken by the Bank of Japan when the nominal short-term interest rate was virtually at zero … effects were adverse on net for Japan's economy. However, our analysis counsels caution in accepting the view that, ceteris …

these two markets with the regulatory environment for banks in Japan, with Japan's overall external financial position, as … environment in Japan, including restraints on interest rates, and possible quantitative restraints, has had an important impact on … States as substitutes for their head offices in extending commercial and industrial loans to Japan-based companies as well as …

is warranted. ; We then turn to the adjustment process. First, we present evidence that a narrowing of Japan's record … be counter-productive. The model shows that this outcome is possible, but we argue that for an economy with Japan … impact on domestic demand in Japan and on trade with the developing countries. …