Reconsidering Japanese deflation during the 1920s

Journal Article (Journal Article)

This paper takes issue with a mainstream view according to which the alleged poor performance of the Japanese economy during the 1920s was the result of the deflationary macroeconomic policies: such policies were repeatedly announced but not implemented until 1929. Price deflation is explained with a model showing that the announcement of a future appreciation of the exchange rate will lead to a decline in the price level. Both in international perspective and in light of later Japanese events, it is difficult to hold a negative view of the inability of Japanese governments to implement consistent deflationary policies during the 1920s. © 1992.

Full Text

Duke Authors

Cited Authors

  • Faini, R; Toniolo, G

Published Date

  • January 1, 1992

Published In

Volume / Issue

  • 29 / 2

Start / End Page

  • 121 - 143

Electronic International Standard Serial Number (EISSN)

  • 1090-2457

International Standard Serial Number (ISSN)

  • 0014-4983

Digital Object Identifier (DOI)

  • 10.1016/0014-4983(92)90008-K

Citation Source

  • Scopus