Shouldn't we now be discussing economic policies that will energize the Japanese economy?
This time, I would like to introduce a Japanese expert's argument that now is the time to discuss economic policies that will energize the Japanese economy.
Recent economic policies in the advanced economies of Europe and the U.S. have taken a clear stance to avoid accelerating the rate of inflation.
In Japan, inflation is not yet clearly high, and there has been no such change.
One of the reasons for the rising inflationary pressures in the economies of Europe and the United States is that supply has not been able to keep up with demand which is recovering from the effects of the Covid-19 pandemic.
In Japan, by contrast, the recovery in demand has not been as strong so far, and therefore there is no need to rush to curb demand by raising interest rates as in the United States and Europe.
