Japan inflation now falling fast – monetary and fiscal policy settings have been vindicated

Created
Wed, 17/01/2024 - 16:54
Updated
Wed, 17/01/2024 - 16:54
The latest information from Japan suggests that in December 2023, its inflation fell sharply for the second consecutive month and that one might conclude the inflation episode is coming to an end. The Bank of Japan made the assumption that this supply-side inflation was temporary and would subside fairly quickly once those constraints eased. And…