Wednesday, May 27, 2015
The real scope of Japan's economic recovery
It's been long said that Japan has been in a deflationary spiral, and despite efforts by the central bank to restore price increases, not much has occurred.
However, I contend that the recovery is definitely setting in, with the loose monetary policy certainly increasing bank lending, inflation expectations, and weakening the yen back to where it was during the best economic period post 1990s, which was 2002-2007.
The scope in which many people look at is certainly the wrong one. Many simply look at CPI to gauge inflation, but these statistics leave out much in the way of true prices.
More on this later
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