Bloomberg: Abenomics has chance to reshape Japan

[CityFarmer]

Latest update on Abenomics...

Tokyo halfway to inflation target on Abenomics boost

TOKYO — Japan last month passed the halfway mark towards its inflation goal as consumer prices rose the most in five years, while regular wages halted 17 months of declines, data showed yesterday, underlining progress under Abenomics on two key fronts to revitalise the economy.

Factory output rose for a third straight month, retail sales jumped and job availability hit a six-year high, other data showed yesterday, adding to signs that the recovery in the world’s third-largest economy is gathering momentum.
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http://www.todayonline.com/business/toky...mics-boost

[freedom]

To inflate the Japan economy, just printing money is not going to help. The Japanese government has to study where to inject money to have an effect. They can't do exactly the same as the US today, but they should have done it when the property price collapsed.

What I think the Japan government should do is to raise the salary of the working class. The deflation causes huge problems among younger generation and favors the elder generation, who does not contribute much to the economy.

They can also encourage women to work to improve the household income to better distribution.

[CityFarmer]

To inflate the Japan economy, just printing money is not going to help. The Japanese government has to study where to inject money to have an effect. They can't do exactly the same as the US today, but they should have done it when the property price collapsed.

What I think the Japan government should do is to raise the salary of the working class. The deflation causes huge problems among younger generation and favors the elder generation, who does not contribute much to the economy.

They can also encourage women to work to improve the household income to better distribution.

FYI, there are three "arrows" in Abenomics, printing money is only one of them. Fiscal policies and structure reform are the other two.

[freedom]

I don't understand what you are trying to say.

Anyway, so far, I don't see much action to raise income of working class in the new policy. But that's the most effective way of raising sustainable inflation in the long term, IMO.

only recently, I start to see some organizations are calling Japanese corps to raise wages.

But obviously, the Japanese economists are far behind the US ones.

One of the reason that Singapore inflation is low with so much growth in economy is suppressed wages. One of the side effects is the unstable property prices recently.

[CityFarmer]

I don't understand what you are trying to say.

Anyway, so far, I don't see much action to raise income of working class in the new policy. But that's the most effective way of raising sustainable inflation in the long term, IMO.

only recently, I start to see some organizations are calling Japanese corps to raise wages.

But obviously, the Japanese economists are far behind the US ones.

One of the reason that Singapore inflation is low with so much growth in economy is suppressed wages. One of the side effects is the unstable property prices recently.

Google on "Abenomics arrow" will give the detail. It is a well-discussed topic on Abenomics, and your concerns might already be taken care of...

[freedom]

I am not talking about Abenomics. I am merely talking about printing money, only. That's all I care about.

If BOJ just thinks that the Fed just prints money to save US, it would be very wrong to realize that the Fed did more than that later.

Since the beginning, what the Fed targeted is merely the honest real estate mortgage or so called prime mortgage. The Fed did not save subprime mortgage, those who were speculating in subprime mortgage mostly bankrupted or being bought, such as CountryWide, Bear Stern and Lehman Brothers. The rest of the financial system was sound. AIG/Fannie Mae/Freddie Mac were duped. Goldman Sachs, Morgan Stanley and Citi were relative light in sub prime mortgage. So the Fed merely saved the one who did little wrong, were hurt anway and should be saved.

[CityFarmer]

Mr. Market responding to Abenomics...

Nikkei posts best year since 1972 as Abenomics drives gains

TOKYO – Japan’s Nikkei stock average rose to a fresh six-year high to close out 2013 with a 57 per cent annual gain, its biggest in more than 40 years on the back of aggressive economic stimulus by Prime Minister Shinzo Abe.
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http://www.todayonline.com/business/nikk...ives-gains

[CityFarmer]

Latest update on Abenomics. More QEs are also expecting...

Japan’s GDP data raises concern over obstacles ahead

TOKYO — Japan’s economy grew at less than half the forecast pace in the final quarter of last year, heightening concern that recovery in the country might not be strong enough to weather further challenges expected this year.

Gross domestic product grew an annualised 1 per cent from the previous quarter, said the Cabinet Office yesterday, less than economists’ expectations of 2.8 per cent.

While capital spending rose by the most in two years and consumption picked up, trade deficits from surging imports and limited gains in exports dragged on the expansion.

Economists still expect growth to accelerate in the current quarter as shoppers buy more goods before a coming sales-tax hike. However, any more disappointments could increase the need for further fiscal and monetary stimulus.
...
http://www.todayonline.com/business/japa...cles-ahead

[freedom]

As I have mentioned before, printing money alone does not help the economy. What the Japan government should do is to raise the working household income to raise inflation, not by simply printing money. The BOJ has a lot to learn from the Fed. Household income should be the indicator to watch. Devaluation to force demand will only increase speculation, not genuine consumption demand.

The deflation in Japan is because the ones with wealth have no demand and the ones with demand have no wealth.

[CityFarmer]

As I have mentioned before, printing money alone does not help the economy. What the Japan government should do is to raise the working household income to raise inflation, not by simply printing money. The BOJ has a lot to learn from the Fed. Household income should be the indicator to watch. Devaluation to force demand will only increase speculation, not genuine consumption demand.

The deflation in Japan is because the ones with wealth have no demand and the ones with demand have no wealth.

I also mentioned, any discussion on current Japan economic, without involving the Abenomics, i.e. the total package, is meaningless.

FYI, printing money is part of the Abenomics. The same for raising inflation, is part of the Abenomics' objective, with a specific immediate target. It is 2% IIRC.