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Edward Pearson

Lost in inflation: the trap of focusing solely on the consumer price index | The Japan ... - 3 views

  • interest rate policy since February 1999
    • Edward Pearson
       
      -Increase borrowing and decreasing savings -however, real interest rates are positive due to deflation 
  • the government's fiscal policy options are starting to run out
    • Edward Pearson
       
      Increase in budget deficit as spending increases and tax revenue decreases - along with debt of 215% of GDP
  • This is reflected by globalized Japan's descent into its first trade deficit since 1980
    • Edward Pearson
       
      GDP=C+!+G+X-M  demand for domestic products decrease because foreign products are relatively cheaper - increase in M and decrease in X, so AD decreases and GDP decrease causing deflation
  • ...4 more annotations...
  • prices in Japan remain very high by international standards.
    • Edward Pearson
       
      Lack of factors of production - mainly land need for importing from foreign countries possible solutions- Free trade
  • This is one factor behind Japan's high prices.
  • cannot pin their hopes on wage increases
    • Edward Pearson
       
      should be a decrease in wages as revenue decreases - sticky wages 
  • They should step back and take a look at the big picture, including Japan's abnormally high prices,
    • Edward Pearson
       
      deflation possibly could be advantages - increase in spending power, international competitiveness etc 
Nofar Lapidot

August exports grow 2.7% while imports drop 4.7% -- Shanghai Daily | 上海日报 -- ... - 1 views

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    exports and imports in China affect the GDP
Nofar Lapidot

Boost in US exports could create 5m jobs by 2020 -- Shanghai Daily | 上海日报 -- ... - 0 views

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    Increase in exports may cause lowered un employment
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