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.
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.
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.”