relation to the recently completed Danish Price History Project. If one define price stability as an inflation rate around 2 … four decades following the end of the Second World War where inflation expectations lost their anchor. …

inflation should differ between inflation and deflation episodes, using data for Japan and Hong Kong. We use a random cross … both the inflation and deflation periods, and the parameter on the second moment changes sign in the deflation period, as … the theory predicts. Keywords: inflation, deflation, menu costs, Hong Kong, Japan. …