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Japan’s Inflation Rate Rises-But Economic Challenges Remain

November 30th, 2013

Japan’s economy registered modest GDP growth and the highest rate of inflation in five years, according to October’s data. Even with the higher level of price inflation, core inflation may barely exceed an annualized rate of one percent. The Japanese economy has been experiencing an L-shaped recession for the past two decades, with strong deflationary pressures. Accordingly, the Bank of Japan has been pushing for higher inflation, so the recent data is in line with BOJ policy goals.

While some observers are claiming that the recent news shows signs of some positive trends in the long-stagnating Japanese economy, it must be remembered that whatever paltry GDP growth is occurring is a function of the highest national debt to GDP level of any major advanced economy (in excess of 200 percent), while the uptick in exports is facilitated by a deliberate weakening of the yen, a monetary measure that can always be offset by similar steps undertaken by Japan’s competitors in the global marketplace. In addition, Japan’s dismal demographic situation is not getting better, and add in renewed tensions  with China over disputed Islands in the East China Sea, and one can discern that the nascent  and very tentative upturn in Japanese economic activity is highly fragile.


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Hillary Clinton Nude


Hillary Clinton Nude


Hillary Clinton Nude

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