This paper examines Japan's experience in the first half of the 1990s to shed some light on several issues that arise … deflation? How quickly should monetary policy respond to sharp declines in inflation? Are there factors that inhibit the … deflationary episode? We conclude that Japan's sustained deflationary slump was very much unanticipated by Japanese policymakers …

degree of uncertainty associated with potential output in an environment of prolonged stagnation and deflation. Consequently … declines in Japanese inflation expectations. Policies undertaken by the Bank of Japan during this period did little to …

time were the United States and Japan. Accordingly, the paper examines relevant policies of these two economies to explain … developments in the lead-up to the Crisis are identified as key contributing factors: Japan's withdrawal of fiscal and monetary … markets which triggered a massive flow of funds into industrialized countries' asset markets; and Japan's policy decision to …

base control in Japan …