increases and decreases in global energy and food prices, exchange rates, and money supply which cause inflation/deflation from … exchange rate and money supply, on the consumer price index (CPI). The model is intended to differentiate the influence of … significantly. Meanwhile, the increase in global food prices causes inflation in the short run. The exchange rate has the most …

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. …