Kuroda in Davos

  • We're in second-longest expansion post-war
  • In Japan the contrast between recovery and inflation stands out more than anywhere else
  • Medium-to-long term inflation expectations are expected to rise
  • The deflationary mindset has been more tenacious than expected
  • The output gap is closing
  • The BOJ will continue aggressive easing
  • Most risks, from my perspective, are external
  • Technology, including 'Amazon effect' is having an effect
  • It's not easy to eradicate the deflationary mindset from households and companies, but there are some indications that wages are actually rising

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