Monday, April 15, 2013
Japan's Monetary Policy
This article from the Economist talks about Japan's monetary policy, and how Japanese officials are determined to finally combat deflation in the country. Prime minister Shinzo Abe has set a 2% inflation target for next year, and Japan has committed to doubling its monetary base to achieve that goal. Maybe now Japan will finally get out of its deflationary spiral that started in the 1990's.
Subscribe to:
Post Comments (Atom)
3 comments:
It is not often that one hears about the problems of mass deflation in a country. Usually the problem is with seeing too much inflation. It is interesting to see a country focusing on achieving the one thing that other countries are fighting to prevent.
I read this article and was pleased that the recently elected Prime Minister, Shinzo Abe, has decided to act quickly and decisively to try and finally battle the deflation that has been hurting Japan's economy. Furthermore, it is good to see that Abe's strategy is paying off: the yen has decreased while the price of shares and government bonds have gone up.
Can anyone explain for me why inflation and high interest rates in Japan happen at the same time?
Post a Comment