Jump to content
House Price Crash Forum

Recommended Posts

I know rates have been held to zero for a long period of time in Japan. But since they hit zero, what has wage inflation been going in the same period?

Have wages been stagnant, has cost inflation gone north, are they the Japs feeling impoverished for the twenty year period?

Share this post


Link to post
Share on other sites

I know rates have been held to zero for a long period of time in Japan. But since they hit zero, what has wage inflation been going in the same period?

Have wages been stagnant, has cost inflation gone north, are they the Japs feeling impoverished for the twenty year period?

I was hoping for a chart :(

Share this post


Link to post
Share on other sites

I know rates have been held to zero for a long period of time in Japan. But since they hit zero, what has wage inflation been going in the same period?

Have wages been stagnant, has cost inflation gone north, are they the Japs feeling impoverished for the twenty year period?

When I worked over there, wages in my company had not been adjusted for inflation for a very long time. Ditto for train prices etc. Prices and wages remained constant which brought some degree of stability but I can see the dangers of a deflationary spiral too.

Share this post


Link to post
Share on other sites

http://www.jil.go.jp/english/estatis/eshuyo/201102/e0301.htm

Looks like monthly earnings were up in 2010. +0.5 nominally, +3.4 real (preliminary estimate by the looks of it). They fell from 2007-09. 'Scheduled cash earnings' (that I'm going to guess refers to normal wages before bonuses/extras) was still lower though at -0.2. So this could all be down to more hours worked, more overtime hours worked, one off bonuses etc, but I'll leave that to you - happy browsing...

http://www.mhlw.go.jp/english/database/db-l/22/2212pe/mk2212pe.html

http://www.stat.go.jp/english/data/chouki/19.htm

e0301g1.gif

I think we need a chart that goes back to 1980.

Share this post


Link to post
Share on other sites

I know rates have been held to zero for a long period of time in Japan. But since they hit zero, what has wage inflation been going in the same period?

Have wages been stagnant, has cost inflation gone north, are they the Japs feeling impoverished for the twenty year period?

I don't know about wages but they have been in a persistant deflationary spiral with regards to consumer prices and assets. Petrol, however,was expensive in Japan until the government legislated to allow self service pumping stations.

I suspect there has been no need for wage inflation as virtually everything has been deflating there

This is one of the reasons why I can't see Britain being able to do a Japan with interest rates. Japan just didn't have the imported cost push inflation that we are seeing. I don't know why that is as presumably the Yen devalued like the pound has. Does anyone know?

Share this post


Link to post
Share on other sites

I don't know about wages but they have been in a persistant deflationary spiral with regards to consumer prices and assets. Petrol, however,was expensive in Japan until the government legislated to allow self service pumping stations.

I suspect there has been no need for wage inflation as virtually everything has been deflating there

This is one of the reasons why I can't see Britain being able to do a Japan with interest rates. Japan just didn't have the imported cost push inflation that we are seeing. I don't know why that is as presumably the Yen devalued like the pound has. Does anyone know?

nope the yen has strengthened about 200% since the mid 80s, deflation strengthens a currency, you destroy the debt denominated in it, makes the currency more valuable as there is less credit money

Edited by Tamara De Lempicka

Share this post


Link to post
Share on other sites

Interesting,

So we import cost inflation - weak currency, they exported cost inflation strong currency? Have i got this right?

Wage inflation has been stagnant for twenty years, while deflation and a strong currency absorbs rising costs............

While rates stay low here, while M4 contracts, stays negative, while wages stagnate here in the UK, but costs are rising here, it really is rock/hard place?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.