1. SYNDICATE 5
Interest Rate and Housing
M.Ridwan - 29112555
Machadi Dhana – 29112303
M. Khadafi – 29112324
Pedro Putu Wirya – 29112565
Seto Kusparyanti – 29112306
Yuliani Dewi – 29112321
Rahdianto Maulana - 29112554
2. Problem Statement
In 2003, Japan face their steepest price drop, which fell 0.4%
compare to last year.
The deflation already last for 7 years
The government need solution to handle this situation
3. Theoretical Explanation
The demand curve of money balance. It consist of 2 axis,
the price level ( Axis Y ) and aggregate output ( Axis X ).
This graph occurs when the economy near flat part of AS
curve.
The increase demand ( due to increase money supply to
the market ) will not significantly impact to the increase
of price level.
This is the situation of Japan in 2003
