Does Japan need tighter money?
Once again, we are hearing calls for a more contractionary monetary policy in Japan. Here is a FT headline:
“Bank of Japan must respond to increasingly sticky inflation
Accommodative monetary policy stance no longer makes sense“
But when I look at nominal wages in Japan, I have trouble seeing any evidence of persistent inflation. (Inflation not associated with wage increases is transitory.)
I am open to arguments that I’ve missed something. Thoughts?
