Tuesday, April 21, 2009

Data supporting the concept of continued deflation in Japan

Bloomberg's Jason Clenfield has a piece out today describing how Japan's business have been coping with economic weakness by cutting wages rather than through layoffs. This is not really a surprise given that "lifetime employment" is a concept that still has some support in the country. However, the piece refers to OECD data showing "Japanese salaries have fallen in seven of the last 10 years".

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