The New Face of Japanese Deflation

Falling prices in the 1990s were a sign of restructuring. Now they're a warning that something's going wrong.

In the face of seemingly intractable deflation, some in Japan are now trying to put a happier face on a phenomenon more often portrayed as a major problem. "We should enjoy mild deflation, rather than to deplore deflation as a disease," Eisuke Sakakibara, known as "Mr. Yen" during his stint running international economic policy at the Finance Ministry in the 1990s, said recently.