Taiwan has experienced deflation since 1999 however prices gradually stabilized and began increasing slowly in 2004 During the period of deflation.

Taiwan has experienced deflation since 1999 however prices gradually stabilized and began increasing slowly in 2004 During the period of deflation, the price mode of building changed. The GDP price deflator (PGDP) decreased, as did the CPI from a smaller margin. However, the Wholesale Price Index increased. In fact, this kind of price divergence has happened commonly Yang and Shea analyze data for 1982 to 2003 to contemplation the domestic and foreign factors that cause deflation, particularly since 1999 when the PGDP dropp During this period, aggregate market demand was insufficient, fiscal expenditures were wound unit output labor cost (substituting production technology