Wednesday, September 25, 2013

Japanese real growth is screwed up

I show Japan real growth compounded annually. If Abenomics is working, then why is real growth plunging? It may not be, we do not know yet.  Note that real growth is computed out to Jan 2011.  Fred does not have the proper data series to project the deflater out to current measurement.  So, we likely do not know the results of Abenomics until we get a few revisions.  The result, when data settles down, is that Japan will have squeezed more productivity from the work force and advanced technology such that a real growth is possible.  The alternative is that the deflater never settles down, a good sign of a debt crisis.

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