• Consumer prices rising for the first time in 14 months in Japan.
    3 replies, posted
[URL]http://www.bbc.co.uk/news/business-23462201[/URL] [quote][B]Japanese consumer prices rose for the first time in more than a year in June, a sign that policies aimed at ending deflation could be yielding results.[/B]Data showed that consumer prices, excluding food, rose by 0.4% - the biggest increase for five years. However, the rise was mainly due to higher energy bills rather than increased domestic demand. Prime Minister Shinzo Abe has said that he will end more than a decade of falling prices. [B]Short blip?[/B]Japan has suffered a shortage of energy since the closing of almost all the country's nuclear reactors, which followed the earthquake and tsunami in 2011. As a result, it has been importing much of the energy it needs. Since becoming prime minister late last year, Mr Abe has looked to decrease the value of the yen with government spending and ultra-loose monetary policy, in order to help boost exporters' earnings. However, the weaker yen means it is more costly to import fuel.[/quote] Another article here, which explains a bit of Japans economic background: [URL]http://www.bbc.co.uk/news/world-asia-21528841[/URL] [IMG]http://news.bbcimg.co.uk/media/images/65990000/jpg/_65990888_65990882.jpg[/IMG] [I]Mr Abe has a grand plan to force Japan's economy out of 20 years of deflation[/I]
It's strange how economically speaking both deflation and inflation are bad, so your best bet is to just stick with a tiny bit of inflation
[QUOTE=deltasquid;41603199]It's strange how economically speaking both deflation and inflation are bad, so your best bet is to just stick with a tiny bit of inflation[/QUOTE] 2% inflation is usually ideal.
I am glad the Prime Minister's economic plan is working. It is apparently so ambitious that it had my Political Science and Global Economics Professor goo-goo eyed: "we've never seen ANYTHING like this before"
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