The increased global linkages promote economic growth in the world through two key mechanisms: the division of labor and the international spillovers of knowledge.
Toshihiko FukuiThe direct investment of Japanese businesses to East Asian economies accelerates the reallocation of their production bases. Consequently, between Japan and the other East Asian countries, both exports and imports are growing substantially.
Toshihiko FukuiHowever, in spite of the general perception that monetary policy should be conducted so as to avert deflation, a central bank cannot lower interest rates below the zero lower bound.
Toshihiko FukuiDuring the past two decades, inflation has fallen to a low level in major industrial countries.
Toshihiko Fukui