Article;
Bank of Japan Pledges Unlimited Easing Commits to Price Goal
Comment;
Wages in Japan is 739 yen too high than 7.24 dollar in the US in absolute terms with out dollar and yen. Both country are at the same stage of development and even the poverty figures with the US at 16% and Japan at 14% tells that the same number of people in theses economies are above and below the poverty line. Then why we see the differential we see in their wages rate. It is because of our currency system, other things being constant. Have people accepted high voulmes of money as normal in Japan? Or deflation is due to a very high base period? Japanese per capita income has increased relative to other countries in OECD with a higher rate. When Chinese per capita increases 3, 000 to 5, 000 US $ the Japanese percapita income rose from 37, 000 to 45, 000 US $. And, per capita income in the US expanded from $ 46, 000 to $ 48, 000 in the same period. I just want to say that Japan needs a so massive stimulus that is hard to expect. The13 trillion yen in stimulus will not match the quality of recovery we want. If the US spends 1 trillion on recovery Japan will need 100 trillions. At least the absolute wage differential but same stage of development tells us so … IS THIS IS WHAT OUR CURRENCY SYSTEM OFFERS ?
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