This paper examines the cost of deflation in the context of Japan''s ongoing deflationary episode. The impact of … deflation owing to the zero interest rate bound on monetary policy, wage rigidity, redistribution of wealth from debtor to …

near the zero bound by studying the experience of Japan during the ""Lost Decade"" which followed the asset-price bubble … collapse in the early 1990s. Estimation results based on a structural model suggest that the Bank of Japan''s interest …

I model deflation, at zero nominal interest rate, in a microfounded general equilibrium model. I show that deflation … instead of deflation. This is optimal, since it curbs deflation and increases output by lowering the real rate of return …

complementary monetary policy tool to stimulate the economy and combat the risks of deflation when the policy interest rate is at …

Japan's aging and shrinking population could lower the natural rate of interest and, together with low inflation … expectations, challenge the Bank of Japan's efforts to reflate the economy. This paper uses a semi-structural model to estimate the … impact of demographics on the natural rate in Japan. We find that demographic change has a significantly negative impact on …