Thursday, February 23, 2006

On The Japanese Trade Deficit

I'm trying to think about the implications of the economic fundamentals driving Japan's 'sustainable recovery'. What we know is that as the population ages the labour market is tightening. This is pushing up wages but not productivity. There is a consequential 'bounce' in domestic consumption. But what happpens next?Well my native economic wits tell me that the relative prices of Japanese imports

No comments:

Post a Comment