Deflation

Why the Bank of Japan keeps on doing nothing

For pretty much all of 2004, the Bank of Japan has done nothing. And looking ahead to 2005, it's not expected to do a whole lot more, this article suggests. That the BOJ isn't having a serious discussion of deflation ending anytime soon throws cold water…

BoJ paper on deflationary traps

This Bank of Japan discussion paper provides a theoretical overview of monetary and fiscal policy with the potential to engineer an exit from a deflationary trap, which the author defines as sustained deflation in the presence of zero interest rates.

Price stability and Japanese monetary policy

Many observers have concluded that central banks are powerless to end deflation when short-term interest rates are near zero. This Bank of Japan Discussion Paper by Robert Hetzel, Vice President of the Research Department, Federal Reserve Bank of…

Comments on Price stability & Japanese mon policy

This Bank of Japan Discussion Paper summarises the authors' main points of agreement and disagreement with respect to the proposal written by Dr Hetzel. The authors agree with Dr Hetzel's proposal on four points but disagree with the proposal on three…

Japan 'half way' to overcoming deflation

While deflation has shown signs of easing in Japan, rising raw material prices still haven't affected consumer goods, signalling that price declines will continue, Japan's Cabinet Office said in its white paper on the economy.

FOMC minutes, 4 May, show worries over inflation

Minutes from the Federal Reserve's 4 May FOMC meeting released on 1 July showed that nearly two months before the Fed raised short-term interest rates on Wednesday, some board members made it clear that they were more worried about inflation than Alan…

Government and BOJ to co-op on deflation

The Japanese Government and central bank will work together to end deflation and support a recovery in the world's second-largest economy, Finance Minister Sadakazu Tanigaki told Asian counterparts in South Korea.

BOJ's Fukui sees hope for prices

The governor of the Bank of Japan, Toshihiko Fukui, said on Sunday 2 May that he saw hope for ending six years of falling prices as early as the end of the current fiscal year, which began April 1.

U.S. inflation still no worry - Fed's Broaddus

In a speech on Monday 15 December Richmond Fed president Alfred Broaddus said a short-term rise in inflation would be nothing to worry about and the prospects of deflation were lower than a few months ago. "Accommodative monetary policy could mean, could…

BoJ expects deflation to continue into 2005

In its twice-yearly economic report released Friday the Bank of Japan said that it expects deflation to continue through to March 2005, according to AFX Asia. "Consumer prices are forecast to continue posting small declines in this and next fiscal year …

Fukui chief vows to fight deflation

Toshihiko Fukui, governor of the Bank of Japan, said on Tuesday 28 October that he sees no immediate end to Japan's deflation problem, according to AFP, but he pledged to continue the struggle with high levels of liquidity. "Just because we have a…

Koizumi aide raps BOJ for deflation failure

Former vice-minister for international affairs at Japan's finance ministry Haruhiko Kuroda on Sunday 26 October launched a strong attack on the Bank of Japan (BOJ) for failing to perform its legal duty of halting deflation, according to The Business…

Poole on Economic Growth & the Real Interest Rate

In a speech on 'Economic Growth and the Real Rate of Interest' given on 14 October, William Poole of the Federal Reserve Bank of St. Louis said his best guess is that the current stance of policy makes adequate allowance offsetting the risk that the…

Alan Greenspan defends worries about deflation

Opening a two-day conference on monetary policy sponsored by the Federal Reserve Bank of Kansas City, Alan Greenspan said on Friday 29 August that the Fed was right to worry about deflation even though the threat was remote as uncertainty remained "the…

Kenneth Rogoff - Escape from global deflation

In an article published in the Nihon Keizai Shimbun, Kenneth Rogoff of the IMF said the odds of global deflation are not high, but if it were to set in, the world's central banks have the tools needed to address the problem. The path out, however, is…

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