Note 2-12

12 See Harada, Kawasaki, Egawa and Kitaki (2003). Kuroda and Yamamoto (2005) compiled achievements of their relevant studies, indicating that the downward rigidity of nominal wages was seen in the 1990s. But this study noted that an analysis of up-to-date data indicated no downward rigidity of nominal wages in and after the 1990s. As reasons for the disappearance of the downward rigidity in and after the 1990s, the study cited people's diminishing resistance to wage cuts and an unidentified large-scale one-time adjustment to a big shock.