Japan's Phillips Curve Looks Like Japan


  • I thank Katsumi Shimotsu for helpful comments and InGu Khang for able research assistance. I thank the Social Sciences and Humanities Research Council of Canada and the Bank of Canada fellowship programme for supporting this research. The views expressed herein are not necessarily those of the Bank of Canada and are the author's alone.


During the past 15 years Japan has experienced unprecedented, high unemployment rates and low (often negative) inflation rates. This research shows that these outcomes were predictable as part of a stable, readily recognized Phillips curve.