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Taiki Murai is research assistant at the Institute for Economic Policy of Leipzig University.
Central BanksFinancial MarketsInflation
The relative lack of inflation in Japan doesn't mean real wages haven't fallen.
Do the low inflation rates mean that the purchasing power of Japanese and Swiss citizens has increased relative to other countries over time? The answer seems to be no.
Money and Banks
Overall, at least 50 percent of the consumer price index in Japan appears to be government controlled, which is reflected in the significant growth of government spending on subsidies.