
The Zero Bound in an Open Economy
A very interesting paper by Professor Svensson going against the grain oftraditional theories of the cause and solution of Japan's economicdifficulties. It was presented at the Bank of Japan's 9th internationalconference, "The Role of Monetary Policy under Low Inflation: DeflationaryShocks and Their Policy Responses," Tokyo, July 3-4, 2000).
Professor Svensson says Krugman
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