Saturday, February 21, 2015

Japan heading to zero inflation

TOKYO (Reuters) - Prices have remained flat for half the items measured in Japan's consumer price index (CPI) even after the Bank of Japan launched massive stimulus two years ago, research by a private think-tank showed, underscoring the challenges of ending deflation.

Well, we have another result from Krugman's fantasy about inflation. What did we learn? If government really wants a price hike for Japanese consumers, then raise the consumption tax.

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