Japan: Selected Issues

The paper discusses the cures available for the economic malaise that can arise because nominal interest rates cannot be reduced below zero. However, a sufficiently high rate of target inflation can prevent the occurrence. The paper highlights a number of important issues in understanding the transmission of shocks between Japan and the Asia-Pacific region. Structural reforms, information technology, and medium-term growth prospects in Japan have been discussed. The paper traced some of the links between land prices and the financial sector, and economic activity.
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Volume/Issue: Volume 2001 Issue 220
Publication date: December 2001
ISBN: 9781451820607
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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Business and Economics , Banks and Banking , Inflation , Money and Monetary Policy , ISCR , CR , Japan , firm , real GDP , inflation target , land price , price level , venture capital , rate of inflation , price movement , Inflation targeting , Land prices , Inflation , Real interest rates , Real estate prices , Asia and Pacific , Europe , Global , East Asia

Summary

The paper discusses the cures available for the economic malaise that can arise because nominal interest rates cannot be reduced below zero. However, a sufficiently high rate of target inflation can prevent the occurrence. The paper highlights a number of important issues in understanding the transmission of shocks between Japan and the Asia-Pacific region. Structural reforms, information technology, and medium-term growth prospects in Japan have been discussed. The paper traced some of the links between land prices and the financial sector, and economic activity.