How Will BOJ Respond to Return of Deflation?

By one measure, deflation, like the swallows at Capistrano, has returned to Japan. According to the official target of the Bank of Japan (BOJ)—the consumer price index (CPI) except for fresh food—prices fell -0.1% in August from last year. This is the first time Japan has seen deflation since April 2013.

TOE Alert: Another Technical Recession Predicted

Japan in "technical recession" as July-Sept. GDP estimated to have fallen for 2nd consecutive quarter

TOE Alert: Time Running out for TPP; Auto Talks in DC Make Little or No Headway

Automotive TPP talks last week in DC failed to resolve—or even narrow substantially—the gap among the US, Japan, Canada and Mexico. Another round of talks is expected next week.

Enforce Japan’s Anti-Discrimination Laws: How to Raise Wages

Richard Katz's September issue of TOE includes reports on How to Raise Wages, For Now, Abe Polls Bounce, Abe Opens Door with Statement on War, Abe’s Careful Speech, Economy Watch, an interview with Nicholas Lardy on China's stock market and an interview with Tokyo University assistant professor Matthew Brummer, an expert on innovation, to understand Japan’s status as a “tech power.”

GDP, Wages, Stock Market all Disappoint

This has not been a good few weeks for the Japanese economy. The stock market, the wage report for July, the GDP revision, and car sales in August have all provided disappointments.

For first time, majority disapprove of Abe

Disapproval outweighs approval by 14 percentage points in Kyodo survey

How Much Do Stock Prices Help Abe?

In this report, Richard argues why Abe's belief that the rising stock prices will help his overall approval rating is incorrect.

TPA: Discontent Behind the Dysfunction, Part 3

If TPP were going to produce very sizable real income gains for most American workers (through some combination of higher wages and lower prices), then the economic arguments for TPP might be more persuasive.

TPA: Discontent Behind the Dysfunction, Part 5

Senate approves close of debate on TPA 60-37; TAA requires another vote; and then a vote in the House. Under TPA, even if TPP were concluded tomorrow, it would be at least four months before Congress could vote on ratification.

TPA: Discontent Behind Dysfunction, Part 4

Congress leaders hope to pass TPA within a week or so, but that does not mean quick conclusion to TPP talks.