Wednesday, November 5, 2014

Krugman Visits Japan and Sees...


Paul Krugman writes at NYT:
Right now, Japan is struggling to escape from a deflationary trap...

Here are the facts:

The Inflation Rate in Japan is reported by the Ministry of Internal Affairs & Communications. The inflation rate in Japan was recorded at 3.20 percent in September of 2014.

Year-on-year, the biggest price increases were reported for: fuel, light and water (+5.3 percent); food (+5.1 percent); furniture and household utensils (+4.2 percent); culture and recreation (+4.7 percent); transportation and communication (+2.4 percent); clothes and footwear (+2.8 percent) and education (+2.2 percent). Cost of housing grew only 0.1 percent.

I will leave it to the reader to decide if Krugie is delusional or deliberately misleading. Whatever, it is not healthy.

1 comment:

  1. Must read Joseph Salerno's "AN AUSTRIAN TAXONOMY OF DEFLATION"