Has deflation contributed to the long lasting stagnation of the Japanese economy? Could the Bank of Japan have stopped deflation by implementing a more expansionary monetary policy? Our tentative answers are probably not to the first question, and probably yes to the second question. We find...

The paper analyses the process of long-run growth in Japan over the period 1957-2001, using a common trends model, in order to asses whether the economic slowdown in Japan over the 1990s has been caused by a productivity slowdown. The paper finds empirical support for the neoclassical growth...

Has deflation contributed to the long lasting stagnation of the Japanese economy? Could the Bank of Japan have stopped deflation by implementing a more expansionary monetary policy? Our tentative answers are probably not to the first question, and probably yes to the second question. We find...