how to
dig themselves out of debt in a time of slow economic growth. Most are still
engaged in aggressive budget-slashing.
will emphasize spending, particularly on
infrastructure, to increase economic growth. The overall infrastructure outlay –
$35-billion over three years –
This article discusses about the recent (August) increase of inflation in Japan, after a deflation that had been lasting for fifteen years. The labor market is very tight and companies have been starting to raise wages, which would indicate that prices will still rise, leading to Japan reaching its goal of a 2 percent inflation rate. Japan has come through recession in 2012, and prices raising tend to indicate that Bank of Japan's monetary stimulus and reflationary policies have been bringing improvements to the economy.
The fact that inflation has been increasing lately will have absolutely a positive effect on Japan's economy, which has grown by a third between April and June. What Japan needs to focus on now is keeping the inflation rate stable and not letting it be affected by disinflation. Prime Minister Abe has been pressuring employers to raise wages, which it might not be the best move, since it will reduce their competitiveness. In the long-run, if the inflation is kept at a normal and stable percentage it will surely be positive for Japan's economy.
the currency of Japan is deacresing. this has a negative effect on the whole japanese economy. the rate of inflation has never been so high in 5 years. cost of fuel and electricity rises.
Ettore, please add some more thoughts. I would you like you to have at least 3-4 sentences summarizing the article and then a few more relating it to the cause/effect/impact of inflation.