Japan Inc's inflation expectations stall in March: BOJ survey

highlighting yet again the difficulty the Bank of Japan faces in reaching its elusive 2 percent inflation target.

Grateful I am that this has so far proved the case, but if they haven’t been able to carefully increase inflation to a defined target level after 5 years of trying, it suggests that they simple don’t have the ability to controllably, responsibly do so.

Japan’s economy has expanded for eight quarters

Which wasn’t a stated objective of what the BOJ was doing. If they can’t achieve their stated objectives, it seems strange to give them credit for positive outcomes that were never even stated as intentions. That is, the BOJ might have done nothing such and the economy may still have egged out mild steady growth in the coattails of growing global economy.

this record run of growth has been slow to translate into higher consumer prices.

So maybe the inflation models they are using are, like, totally wrong. Just a thought.

No one is begging for consumer prices, that is the cost of living, to be increased anyway. Instead people want higher salaries that come through higher productivity and subsequent economic growth.

But then what works overseas (free market capitalism) in individual oriented cultures cannot simply be applied to Japan, where group culture reigns supreme, as seen this week by legions and legions of new workers entering the workforce with regimented bows.

Then why is beer being raised 10% in price and other goods going up as well according to the article here yesterday?

Inflation would be a very bad thing for the majority of Japanese workers.

"Inflation would be a very bad thing for the majority of Japanese workers."

It would be a good thing if employers decided to share their record-high profits with their workers. Unfortunately the BOJ can't do much about that.

@JeffLee, since when has an Employer within Japan raised salaries in line with inflation ?

Japan sure needs to figure out a model that will work for it.

Free market capitalism has no support in Japan, so normal standard economic theories can’t be expected to work.

Socialism can’t be expected to work all of a sudden either.

Getting older is the standard reason for getting a pay rise in Japan but with a shrinking workforce that really doesn’t make sense.

Japan needs a unique economic model that will work to achieve desired outcomes within the constraints that local culture imposed upon it, as well as being economically sane and sustainable.

The Japanese leader (or committee more likely) that figures this out will down well in history.

Alternatively nothing will ever change and Japan will continue to muddle slowly along.

Japan needs a unique economic model that will work to achieve desired outcomes within the constraints that local culture imposed upon it, as well as being economically sane and sustainable.

Interesting view. Wonder how a modified model from their old friends in Europe would turn out.

They share a high number of family-owned businesses and are both allergic for short term thinking. As old friends they like and admire each other before and after their joint war adventures :)

https://www.politico.eu/article/why-the-rhineland-model-is-still-strong/