Re: phillips curve about japan and deflation......
by "Dan in Philly" <djr8@[EMAIL PROTECTED]
>
Mar 4, 2008 at 12:25 PM
"zhen" <wangzhen0829@[EMAIL PROTECTED]
> wrote in message ...
> Hi everyone:
> I have a question concern about the economy of Japan.
> * Whether the short run phillips curve can well explain the relation
> between unemployment and inflation rate during the last 30 years?
> * What is the cause of the long time of low inflation and even
> deflation?
> Thanx in andvance.
> Z.
Are you talking about the Expectations-Adjusted phillips curve? Because,
after a few years of low inflation, people start to expect low inflation;
after that, continued low inflation should not worsen unemployment.
Dan in Philly
