Affordable Access

Download Read

Comment on "Exporting Deflation? Chinese Exports and Japanese Prices"



China's Growing Role in World Trade This PDF is a selection from a published volume from the National Bureau of Economic Research Volume Title: China's Growing Role in World Trade Volume Author/Editor: Robert C. Feenstra and Shang-Jin Wei, editors Volume Publisher: University of Chicago Press Volume ISBN: 0-226-23971-3 Volume URL: Conference Date: August 3-4, 2007 Publication Date: March 2010 Chapter Title: Comment on "Exporting Deflation? Chinese Exports and Japanese Prices" Chapter Author: Joshua Aizenman Chapter URL: Chapter pages in book: (227 - 230) Exporting Defl ation? Chinese Exports and Japanese Prices 227 Joshua Aizenman is presidential chair and professor of economics at the University of California at Santa Cruz, and a research associate of the National Bureau of Economic Research. ing Paper no. 12173. Cambridge, MA: National Bureau of Economic Research, April. Comment Joshua Aizenman The remarkable growth experience of Japan from the 1950s has led observ- ers in the 1980s to credit Japan with fi nding a superior system to the U.S. capitalism, viewing Japan as the “rising sun” that will overtake the United States. Yet the stagfl ation of the 1990s abruptly put the end to these claims, inducing some policymakers in Japan to look for external scapegoats stop- ping Japan’s aspirations to regain its prominence. This interesting paper investigates the degree to which the defl ation- stagfl ation decade of the 1990s in Japan was due to globalization and Chinese imports. After a careful inves- tigation of these allegations, the authors unambiguously conclude that this was not the case. Chapter’s Investigation Strategy The authors evaluate carefully the impact that Chinese exports have had on Japanese prices during 1992 to 2005, applying a methodology inspired by Feenstra (1994) and Broda and Weinstein (2006). They use a constant elasticity of substitu

There are no comments yet on this publication. Be the first to share your thoughts.