In Japan cheered it for ketchup award finally rises – Aftenposten

Kagome is just one of several producers that have ventured to put on prices over the past year.

Falling prices and low or negative growth has been a nightmare for the Japanese economy since the early 1990s. The last few years have core inflation – the prices of consumer goods excluding energy and food – scrambled slowly up above the zero line.

Prices rise at two-thirds of all goods and services included in the Japanese consumer price index, type the British news magazine the Economist.

Japanese and foreign economists and analysts vehe- whizzes about the nascent inflation is a result of “Abenomics” – the distinctive economic policies Shinzo Abe launched when he took over as prime minister in 2012 .

This worries the leaders of the world’s largest economies

the combination of higher public spending and the central bank printing more money to buy up government debt and other debt securities, was pumped into the economy.

the promises are nearly fulfilled.

Abes government On Tuesday forward a third package of measures totaling 13,500 billion yen (over 1,100 billion. US $ ) in this Abenomics program.

at the same time let the international monetary Fund (IMF) presented a new report on Japan’s economy is far more subdued.

IMF calls for including several reforms to create more activity and thus greater growth.

Is the solution for the world economy to hand out extra money to everyone?

This applies particularly labor market reforms, both to increase production per. labor (productivity) and increase employment.

When the population decreases and the aging population grows, so does the need to mobilize labor reserve in the country – women and older workers should stay longer in the job.

IMF also recommends opening up to greater labor. Japan is one of the countries with the most stringent immigration rules.

The IMF downgraded earlier this summer, economic growth in Japan to 0.3 percent this year and 0.1 percent next year.

Weak domestic demand causes people to hold onto their money and restrict companies’ willingness to invest. This dampens private consumption which, according to IMF forecasts will grow modestly.

A strong currency helps to weaken growth prospects further. Japanese yen over the past year rose against other major currencies such as the dollar and yen. This has weakened the Japanese export industry’s competitiveness and opportunities in foreign markets.

China’s debt could trigger new global crisis

Financial markets saluted originally Abenomics welcome in 2013 with sending stock prices aloft and exchange rate down. But this optimism disappeared quickly.

Since the new year, the leading Nikkei 225 index, which measures the performance of the Tokyo Stock Exchange, fell 11 percent. Tuesday joined Nikkei index down 1.5 percent.

Prime Minister Abe’s bold vision is not fulfilled, concludes The Economist that still will not depreciate Abenomics completely. The stimulus program has given some measurable results. The most important thing is probably to break Japan’s “entrenched deflationary mindset.”

Thurs the 2nd positive effects is that corporate profits and dividends have increased and employment is rising. Unemployment is low in Western scale.

Then Abe took over, few expected that Japan would sign the comprehensive trade agreement between 12 Pacific countries (TPP) agreement. Now, Japan has signed but TPP agreement – like a similar deal between the US and EU (transatlantic trade and investment partnership agreement) – hanging by a thread because of political opposition in the US Congress.

Japan will be among large | Per Kristian Haugen Election Victory for Shinzo Abe of Japan was 7 years old triggering Japanese debate on education