Why is there no inflation in japan?

Japan has been experiencing low inflation for a prolonged period, commonly referred to as “Japan’s deflationary trap.” There are several factors that have contributed to this situation, including an aging population, weak domestic demand, and a persistently strong yen. Additionally, Japan’s central bank has struggled to stimulate inflation despite implementing various monetary policies such as quantitative easing and negative interest rates. Some economists suggest that structural reforms aimed at boosting productivity and encouraging greater competition could help to increase inflation in Japan. However, the country continues to grapple with this issue, and its impact on the wider economy and global markets remains a topic of ongoing concern and study.

The effects of inflation are often not directly felt but are played out over a long time, especially long-term investments are vulnerable to inflation.


At Horizon65, we created a mobile app that enabled you to check the effect of inflation on your savings.

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