Low inflation was once a welcome to both policy makers and the public. However, Japan’s experience during the 1990’s changed the consensus view on price of economists and central banks around the world. Facing deflation and zero interest bound at the same time, Bank of Japan had difficulty...

This paper presents a stock-flow-consistent agent-based model calibrated on Japanese data. The goal is to investigate the effects on the joint dynamics aggregate demand and price of the use by Japanese firms of secondary employees (temporary, part-time, or agency). Empirical evidence point to...