Japanese Government To Drop The Word Deflation From Economic Report

December 20, 2013 Share Print 0

Just after the Abe government is closing its first year it will be publishing a report on the state of the Japanese economy. A word that will be missing in that document is probably the biggest achievement of Shinzo Abe’s second term leading Japan. After campaigning with a bold promise to reignite the Japanese economy and rid it of the more than 15 years of deflation, the word will not be found in his report. The first arrow of his three arrow strategy has done most of the heavy lifting. Monetary policy which was just maintained this week and the Fed decision to taper its bond-buying further support Abe’s inflationary path.

This will be the first time in four years that the word “deflation” is not used in a Japanese monthly economic report.

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.