The paper analyses the reasons for Japan's persistently low inflation since the bursting of the Japanese bubble economy … (low inflation conundrum). It is shown that Japan experienced a structural break from a high-growth period with relatively … high inflation to a low-growth period with exceptionally low inflation since the early 1990s. We show based on a stylized …

derives a 'true' rate of inflation on the basis of the different rates of change of the stock of money in circulation and the … nominal value of retail sales. This true rate of inflation is then used to explain changes in quasi-money balances. We … inflation. The annual rate of inflation of the 'true' price index is approximately 12.4 percent higher than that of the official …

trend output growth using an IS relationship and an output gap based inflation equation. They find a positive link between … inflation to the output gap …

and a central bank that uses an interest rate rule to target inflation and/or the price level. We present analytical … results showing that, although inflation targeting often results in real indeterminacy, a price level target generally …