Abe Says Japan is Winning the Deflation Battle

Japanese Prime Minister Shinzo Abe says his country is winning the battle against deflation, the persistent low prices that have plagued Japan’s economy for years.
“This spring wages will increase, and higher wages will lead to greater consumption,” he told business leaders at the World Economic Forum in Davos, Switzerland, on Wednesday.

“It is not twilight but a new dawn that is breaking over Japan.”
He also said he would take on vested interests and act “like a drill bit” to break down obstacles to restoring the country’s competitiveness and doubling inward investment by 2020.
His turnaround plan for the world’s third largest economy — dubbed Abenomics — has included new spending pledges and an aggressive, expansive monetary policy.
Progress on structural reforms to secure recovery for the aging and heavily-indebted country has been slower. But Abe said he would not let up with initiatives aimed at opening up markets, encouraging innovation and immigration, and transforming Japan’s male-dominated corporate culture.
“Japan must become a place where women shine,” he said, repeating an earlier pledge to ensure 30% of senior positions will be occupied by women by 2020.

via CNN

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Alfonso Esparza

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.
Alfonso Esparza