Wasn't Rising Prices Supposed to be Good For Japan?
I was right, of course. Consumer prices in Japan was up 0.6% in the year to November. While that is a lot less than the 4.3% in U.S. and the 3.1% in the Euro area, that represents a significant increase and it alsos represents an end to deflation. So, according to the ignorant Financial Times journalists, this must have represented a boost to the Japanese economy. But as a matter of fact, it didn't as it meant a reduction in purchasing power and therefore consumer spending (The Japanese consumers aren't as keen as American consumers to increase spending even when their income falls.).