The causes of the Japanese deflationary crisis in the light of the Austrian school of economics


  • Bartosz Karpiński Nicolaus Copernicus University in Torun



deflation, crisis, the Austrian school, business cycle


The aim of this study is an attempt to indicate the causes of deflationary crises through the presentation of the phenomenon of deflation and its causes in the light of the Austrian school of economics and to show that the most remarkable case of deflation in recent history, which took place in Japan confirms the Austrian assertions in respect of factors causing severe deflation. For this purpose, basing on relevant literature, the author presents the Austrian view on the concept of deflation and the main aspects of the Austrian Business Cycle Theory. Subsequently, the author analyzes the monetary policy of Japan in the period preceding deflation, pointing out the facts from the contemporary Japanese economy seem to confirm the assertions of the Austrian school of economics.


Download data is not yet available.


Begg D., Fischer S., Dornbusch R. (2007), Makroekonomia, Polskie Wydawnictwo Ekonomiczne, Warszawa.
Bernanke B. (2011), The Economic Outlook and Monetary and Fiscal Policy, Before the Committee on the Budget, U.S. Senate, Washington, D.C. 110107a.htm (accessed 23.04.2011).
Borio C., Filardo A.J. (2004), Back to the Future? Accessing the deflation record, (accessed 20.04.2011).
Buiter W.H. (2003), Should we worry about deflation? Prevention and cure, (accessed 13.04.2011).
De Soto J.H. (2009), Money, bank credit, and economic cycles, Ludwig von Mises Institute, Auburn, Alabama.
Hayek F.A. (1931), Prices and Production, New York
Jackowicz K. (2011), Kryzys japońskiego systemu bankowego 1990-2002, (accessed 11.04.2011).
Kindleberger C.P. (1999), Szaleństwo, panika, krach. Historia kryzysów finansowych, WIG-Press, Warszawa.
Mises L. (1953), The theory of money and credit, Yale University Press, New Haven.
Mises L. (1996), Human Action: A Treatise on Economics, Fox & Wilkes, San Fransisco.
Samaryna H. (2010), Deflacja w Japonii, Polskie Wydawnictwo Ekonomiczne, Warszawa.
Shostak F. (2011), Can expectations neutralise the side effects of loose monetary policy? , (accessed 19.03.2011).
Shostak F. (2011), Do the Fed Chairman?s comments on the economy make any sense?, (accessed 19.03.2011).
Shostak F. (2011), Inflationary expectations and economic growth, ( accessed 19.03.2011).
Zaleska M. (2001), Kryzys w japońskim systemie bankowym, (accessed 13.04.2011).
Bank of Japan,
International Monetary Fund,




How to Cite

Karpiński, B. (2012). The causes of the Japanese deflationary crisis in the light of the Austrian school of economics. Oeconomia Copernicana, 3(1), 29–48.




Similar Articles

1 2 3 4 5 6 7 8 9 10 > >> 

You may also start an advanced similarity search for this article.