2003 Conference Objects

Deflation and monetary policy in Japan

On March 31, 2003, the Center on Japanese Economy and Business organized a symposium featuring Professor Kazuo Ueda, Member, Monetary Policy Board, Bank of Japan. Professor Ueda's presentation, based on his published paper below, discusses the relationship between Japan's stalled economy, the deflation of general prices, and the deflation of asset prices. He argues that the collapse in asset prices, not general prices, has had deleterious effects on Japan's financial system and, in turn, on the economy. He further suggests policy responses to deal with persistent deflation and Japan's ongoing financial and structural problems.