Deflation continues to haunt Japan
Japan has a very large aged population that is not revenue generating and has been a big drain on the economy for the last decade. And the global economic crisis in the last two years has only aggravated the situation and Japan has been forced to keep the interest rates at record low levels. In fact the abnormally low funding by Japan has lead to an asset bubble across the globe in the last five years, that lead to the global economic crisis.
Now Deflation is once again haunting the Japanese economy, which will force the government to continue with the costly stimulus measures for some more time. By the next two or three months, many countries across the globe might pull back the stimulus measures, and may even start increasing the interest rates.
But Japan might continue with the liberal bank funding which may delay the economic recovery of the country.