Pandemic may fire up Japan's inflation, doing what BOJ could not, economist says

The yen will just decline whilst demand for goods and services remain weak -stagflation!

Here we go again. Deflation and on the other hand, inflation. You can never find a one handed economist.

God, economists really need to re-think their entire "raison d'etre". Stop tossing off over 2% inflation. Japan might have some economic problems but any that do exist have nothing to do with inflation and all to government policy.

Stagflation, if it goes on long enough, usually leads to massive social unrest, political upheaval and even revolution. These pampered princes should be careful what they wish for...

If the BOJ and economists focused as much on improving wages which have been stagnant for 40 years because of neo-liberal mercantilist as they do on trying to stoke inflation Japanese society would be much the better for it.

Stagflation is actually high inflation with high unemployment and little private demand. Can't see the first two conditions happening in Japan for a very long time.

"policymakers should not assume that persistent deflation will cap bond yields,"

The BOJ's successful yield-curve-control policy makes that a moot point. You'd think he'd know that.

If the BOJ and economists focused as much on improving wages...

That's not their jobs. That's the job of employers and labor unions.

I have been saying the same thing in this site. Japanese leaders fear hyperinflation than deflation.

The QE of the BoJ was nothing more than an artificial deflationary tool to prevent the much worse fate of hyperinflation that will lead to stagflation.

Apparently, the article may point the possibility that Japan used all of its economic ammos in the last round of QE. If the BoJ continues the reckless path of QE, Japan may end up like the Weimar Republic.

Really? Looking around with open eyes, it’s trickling away with highest possible speed , not down to, but away from households and companies.

But maybe I am completely wrong and should look some hundred miles left or right from me, probably it’s all trickling down on one head anywhere there....lol