By Régis Arnaud
DECRYPTION – Prime Minister Fumio Kishida announces a mive new recovery plan to support the economy.
How do you say “whatever it takes” in Japanese? This is the question that hangs over the economy of Japan after Fumio Kishida announced Thursday a recovery plan amounting to 17,000 billion yen (106 billion euros). In free fall in the polls, the Japanese prime minister has been mulling over a new package for the economy for weeks.
“Wage increases do not follow price increases”, he lamented during a press conference. Correct diagnosis: the Japanese employee notices the flight of labels while his pay slip increases too little. In August (last known figure), the index of consumer price rose by 2.8% but the price of foodstuffs excluding fresh produce jumped by 8.8%. The media are now full of stories of young, penniless Japanese who happily left to seek decent pay. in the USAin Australia or South Korea.
But does the right observation allow us to prescribe the right treatment? “We hope…