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Essay

Japan Deflation Issue

Essay specific features

 

Issue:

Business

 

Written by:

Karen D

 

Date added:

December 15, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

16 / 4452

 

Was viewed:

6068 times

 

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Essay content:

This confusion tends to arise from a failure to distinguish between three related, but different phenomena: the stagnation of the real side of the economy, the deflation of general prices, and the deflation of asset prices. The deflation of general prices has certainly persisted since the mid- or late 1990s, depending on the price index one looks at...
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The deflation of general prices has certainly persisted since the mid- or late 1990s, depending on the price index one looks at. However, the extent of the price decline has been mild. The cumulative decline in the consumer price index (CPI) since its peak in 1998 has been no more than about 3%. It is hard to believe that such mild declines in general prices have been the root cause of the stagnation of the economy...
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