While the onset of recession may lead some oligopolistic firms to engage in price-cutting behavior, we argue this is likely to be only a temporary phenomenon. As the recession deepens, firms will find themselves with (unplanned) excess capacity, which will increase the mutual benefits of...

This paper is concerned with two overlapping issues. In the first instance, we consider the apparent tensions between the visible effects of globalization upon the Japanese economy and the claims of successive commentators that novel Japanese production systems of coordination and vertical...

The world economy is riven by very large imbalances, with the U.S. economy exhibiting high levels of consumption but low savings ratios and a high current account deficit while China provides the mirror opposite. In this paper, we explore the structural causes of these imbalances that underpin...