The article explores how near-zero inflation affects the relationship between inflation rates and the economy in Japan. The researchers analyze data from the 1990s and find that as inflation rates get closer to zero, the short-run Phillips curve becomes flatter. This means that the impact of inflation on the economy weakens as inflation rates decrease. The study also considers factors like supply shocks and expected inflation to control for other influences on inflation rates. The findings suggest that near-zero inflation has a different effect on the economy compared to higher inflation rates.