The Japanese economy in the 1990s experienced a substantial decrease in the nominal interest rate. The positive effect on the business investment, however, should have been canceled out, since deflationary expectations raised the real cost of capital. In this study, we address this unexplored...

Although the Bank of Japan has recently (in 2003) conducted an expansionary monetary policy that targets the current accounts balance, additional monetary policies aimed at overcoming the deflationary situation may be necessary. No monetary vehicle to stimulate the economy under the "zero...

This paper introduces the Carlson-Parkin [1975] method (henceforth, CP) and its variants, which derive an inflation expectation series using actual inflation and published aggregates from a survey on individual economic agents, to beginners. We use the survey results from the Bank of Japan's...

This paper introduces the Carlson-Parkin [1975] method (henceforth, CP) and its variants, which derive an inflation expectation series using actual inflation and published aggregates from a survey on individual economic agents, to beginners. We use the survey results from the Bank of Japan's...