“Japan’s Recovery: Going Right, Just Not Going Well “

I meant to post this yesterday, but didn’t. Its from an (ungated) Wall Street Journal article recounting a mid-June interview with Adam Posen, president of the Washington D.C.-based Peterson Institute for International Economics. He says :

• Despite some short-term setbacks, there are plenty of positive signs Japan is on track to return to steady growth and end deflation
• But progress will be slow and unsteady, in part because he believes Japan must balance its growth strategy with a plan to curb its debt
• Current disappointment is partly the fault of the “spin” that higher prices would lead to a self-reinforcing cycle of higher wages, spending, and investment, he said. “It would be nice to have. But it wasn’t virtuous cycle or death spiral. We’re out of the death spiral. That’s good.”

Much more at the link, an interesting background read: Japan’s Recovery: Going Right, Just Not Going Well