business

Bank of Japan tweaks monetary policy with inflation target distant

19 Comments
By Sara HUSSEIN, Kyoko HASEGAWA

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19 Comments
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Yeah, they've been missing that target for years now... not sure why they keep saying it as though it's new.

7 ( +7 / -0 )

Well the deck is so stacked in favor of corporations and so against workers that it is impossible to "demand" a raise. What is actually happening is people just don't work for crap wages.

6 ( +6 / -0 )

 Furthermore, it is Socialist to punish companies with higher taxes.

That's not what that word means.

6 ( +6 / -0 )

foreign concept to free-market Japanese.

*sets down coffee mug, spits it out all over the place

I don't think you know what the term 'free-market' means. And no, it is not the J-inc/J-gov style of "give me complete and total unfettered access to sell to you while I engage in rampant protectionism."

5 ( +5 / -0 )

5 years, still not on target, only if Abe knows the meaning of incompetent he would quit. No tweak and no cheat.

4 ( +4 / -0 )

Was watching the news and a top gov't spokesman said people don't really want higher wages, they would prefer stable employment. Yeah, right. With unemployment so low and companies dying for staff, I doubt people worry about job security, but would sure like to get paid more.

But as long as companies keep telling the government that they can't raise salaries or people don't really need the raise, we won't see any change.

4 ( +4 / -0 )

Why would you want to lift prices? Why would anyone want higher prices? The absurdity and ridiculousness of this mindless conformity can only be described with The King's New Clothes. Ask ANY normal average ordinary random Japanese person on the streets who doesn't have a clue about economics or academia, ask them if they want higher prices or lower prices. Average people have more senses than these idiots who run the banks and the government. Economic expansion DOES NOT mean increase of money supply, it means INCREASE IN PRODUCTION and INVESTMENT. It means MORE STUFF. More Stuff means LOWER PRICES, as the economy expands, prices must go down as productivity and production increases, that's when people have higher standards of living. For these bankers and politicians, day is night, night is day. Common sense and basic observation and elementary logic simply does not exist.

4 ( +4 / -0 )

Furthermore, it is Socialist to punish companies with higher taxes. USA is moving to much lower company taxes, and economy is booming

Have you actually compared the price of items in japan and america or do you just like spouting hot noise?

4 ( +5 / -1 )

The primary reason for weak inflation in Japan to me is that salaries don't rise

So, until employers pay higher salaries, hit them with higher taxes and distribute the extra revenue to working folks, who will spend more and thus lift the economy.

3 ( +5 / -2 )

Whats that infinite loop of repeating the same thing expecting different results called again? Oh yeah, insanity.

3 ( +3 / -0 )

ilovecoffee, exactly right. The silver-spoon LDP politicians have no idea how ordinary people live and are hoping that they can continue to deceive the working people into thinking that something that makes their lives worse is somehow good for them. The public knows better!

3 ( +3 / -0 )

Was watching the news and a top gov't spokesman said people don't really want higher wages, they would prefer stable employment. 

Probably said by someone who is oblivious to how the average Japanese consumer lives today and one of those folks who makes over 1.07 million a month!

3 ( +3 / -0 )

Hey folks!

Dont worry. Just be ready to buy that new car before the 10% consumption tax rolls along.

Remember less tax-payers and less tax revenue mean that more of your income will be taxed to pay for the unproductive retirees.

Meanwhile wages are destined to remain flat....

Thats the economic nightmare!

2 ( +2 / -0 )

 Sorry, but It is really unfair to expect Japanese employers to raise salaries

The employers have been earning the highest profits in history over the past few years. What's really unfair is that they are NOT paying workers in line with their earnings growth.

That sounds Socialist,

Socialism is state ownership of a nation's capital. Where in my post do I suggest having that?

Yes, that has worked so well in the past.

Yes, it did work well in the high growth postwar era, before the shift to today's shareholder capitalism, which by contrast has seen stagnating wages, income equality approaching 19th century levels, low growth, and devastating financial crises.

1 ( +1 / -0 )

What a group of dumb prostrated old men, it's obviously not working but head down keep on plowing as things get worse and worse here's an idea increase tax that will revive the economy you killed. Might as well murder what you killed. Have a nice retirement or slump on your desk....

0 ( +1 / -1 )

Meanwhile wages are destined to remain flat....

Who do you blame for that?

0 ( +0 / -0 )

@JeefLee

I wouldn’t use the word ‘blame’ but The BOJ and the government control the money supply. It is well within their power to trigger inflation if they wish.

However,the present situation is being macromanaged not micromanaged as it was when the Japanese saw inflation and an increase in land prices several decades ago.

The article seeks to blame the Japanese man in the street and companies for not raising prices whereas it is for the reason I stated in addition to tax and company law reform that this situation is as it is.

Also, Japanese industry has largely decided that China and Thailand can replace Japan as bases of manufacturing thus relegating millions of Japanese into ‘combini style’ jobs which just allow subsistence as a lifestyle choice.

Articles such as this one by Hussein and Hasegawa only repeat the same ‘party line’ without linking the fact that Japan’s wages are not competitive in manufacturing nor are the problems of an aging and low birth rate linked to the present lethargic economy.

Only when the Japanese (voters) become much more vocal and realize that their politicians are self serving , out of touch and clueless will change occur.

0 ( +0 / -0 )

So, until employers pay higher salaries, hit them with higher taxes and distribute the extra revenue to working folks, who will spend more and thus lift the economy.

Yes, that has worked so well in the past.

-5 ( +1 / -6 )

So, until employers pay higher salaries, hit them with higher taxes and distribute the extra revenue to working folks, who will spend more and thus lift the economy.

That sounds Socialist, foreign concept to free-market Japanese. Sorry, but It is really unfair to expect Japanese employers to raise salaries. Yes, the economy is ticking along nicely, yes unwmployment is at record low levels. But Japanese companies are trying to compete with other nations in the region, who pay much lower salary compared to already high Japan salaries. There is no pressing need for salary raise, it will damage Japanese companies. Furthermore, it is Socialist to punish companies with higher taxes. USA is moving to much lower company taxes, and economy is booming.

-7 ( +0 / -7 )

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