Welcome to "BOJ from Home." Through this online tour, we offer you a 3-D/virtual reality (VR) viewing experience as you explore the new tour route of the Bank of Japan's Head Office (designated as an Important Cultural Property).
The interior of the Bank's Main Building can be viewed in 3-D on any PC or mobile device.
You can also enjoy an immersive virtual reality experience using VR goggles or glasses.
In this paper, we examine from both a theoretical and an empirical perspective the validity of the hypothesis that downward nominal wage rigidity (DNWR) induced upward rigidity in wage setting, thereby contributing to the flattening of the wage Phillips curve. We focus in particular on Japanese regular workers, those workers who are characteristically employed on long-term contracts. Our theoretical study, which incorporates long-term employment contracts, indicates that DNWR induces upward wage rigidity through the following two channels: first, due to the lack of sufficient downward wage adjustments during economic downturns, firms may become reluctant to increase wages in economic recovery phases; second, firms contain wage increases even in economic expansion phases as they take into account the risk of pay cuts in the future. The strength of the latter channel largely depends on expected economic growth and its uncertainty. As a result, the wage Phillips curve becomes...
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- Outlook for Economic Activity and Prices (Outlook Report) "The Bank's View" in the Outlook Report will be released immediately after relevant MPMs, and the full text at 2:00 p.m. on the next business day. Summary of Opinions It will be released at 8:50 a.m. MPM Minutes It will be released at 8:50 a.m.
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