For decades Japan had become a model for countries and economists to show the future of their own country as an aged population with no inflation and a lot of money printing would be.
This image and economics have overturned in the last twelve months especially since the new government has taken over. The main slogan that won elections was a large-scale stimulus. And global dynamics also helped it overturn years of deflation into inflation.
No economists would have predicted such a scenario. This has made the government introduce a stimulus package to help people meet their regular expenses and subsidies fuel.
Where the global central banks are reversing the loose policies and raising the rate. Japan has doubled down on its loose policy with unlimited liquidity and the lowest rates possible with high inflation.
On the positive side, many Japanese companies are planning to bring back manufacturing to the county. Even the first TSMC overseas plant ( Largest Semiconductor company) has commenced construction in Japan.
It is early to call whether these policies would overheat the economy but it is for sure making the Japanese Yen reach a level not seen in the last twenty years.
To tell a tale, the favourite candy maker of the country was forced to increase the price of its best-selling product after twenty years due to inflation in raw materials it buys.
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