Nishizaki and Watanabe.

• Position: Japanese consumer price index - Brief Article - Statistical Data Included

Japanese consumer price index (CPI) inflation rates have been declining since the first quarter of 1991. Ranging only between zero and 1 percent in 1996 and 1997, the CPI inflation rates have been negative since the third quarter of 1998. Using Japanese data, Nishizaki and Watanabe provide new evidence about the cost of near-zero inflation. In particular, they are interested in the relationship between the rate of inflation and the slackness of the economy, that is, the short-run Phillips curve. The authors construct a panel dataset consisting of the rate of inflation and the...