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Professor Wakatabe says that if the tax were increased, it would slow down the process of recovery from the recession. now the deflation rate is going down, driven by the personal consumption, which is good, but if the tax were raised, this would slow down the recovery.

The federal reserve has issued a statement where they intend not to raise the interest rates as long as the rate of inflation keeps itself low. It had originally lowered the interest rates in response to the 2008 financial crisis. The issue with this is that persistently low rates leads to a fear of a low value. The effect of this is a decreased aggregate demand as there is a lesser incentive for consumption.

China is continuing to protect its rare earth minerals. It's important to note that China holds nearly 97% of all rare earth's in the world. These rare minerals are needed for many manufacturing ventures. China will increase its regulation on rare earth production to prevent any further externalities.  The article outlines a plan against free trade. Yet, stirs arguments about China's possible attempt to monopolize the industry. The United States, for instance, argues that China's export tariffs are too high, and that they inhibit America's domestic production of needed goods. China argues back that it's an environmental issue.  Countries who rely on technological progress will be hurt by this protection. The minerals are needed for cell phones, wind turbines, missiles, and many other high-tech products. If protection continues, prices will rise, thus lowering the advancement in that sector for many economies around the world. In China, however, less exports mean more jobs domestically. Also more supply domestically. And lastly, the environmental concern of China can further improve the standard of living for citizens whilst cutting down the pollution levels.