Book contents
- The Political Economy of the Abe Government and Abenomics Reforms
- The Political Economy of the Abe Government and Abenomics Reforms
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Contributors
- Acknowledgments
- Abbreviations
- Part I Introduction
- Part II Political Context
- Part III Macroeconomic Policy
- 6 Abenomics, Monetary Policy, and Consumption
- 7 The Great Disconnect
- 8 Abenomics, the Exchange Rate, and Markup Dynamics in Japanese Industries
- 9 The Crisis That Wasn’t
- Part IV Third Arrow of Abenomics
- Part V Foreign Policy
- Index
- References
7 - The Great Disconnect
The Decoupling of Wage and Price Inflation in Japan
from Part III - Macroeconomic Policy
Published online by Cambridge University Press: 05 February 2021
Book contents
- The Political Economy of the Abe Government and Abenomics Reforms
- The Political Economy of the Abe Government and Abenomics Reforms
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Contributors
- Acknowledgments
- Abbreviations
- Part I Introduction
- Part II Political Context
- Part III Macroeconomic Policy
- 6 Abenomics, Monetary Policy, and Consumption
- 7 The Great Disconnect
- 8 Abenomics, the Exchange Rate, and Markup Dynamics in Japanese Industries
- 9 The Crisis That Wasn’t
- Part IV Third Arrow of Abenomics
- Part V Foreign Policy
- Index
- References
Summary
This chapter takes some well-known observations about the structure of the Japanese labor market and adds new evidence about how it has evolved to study inflation in Japan. Our key finding is that labor market dynamics shifted after 1998 so that correlations between labor market tightness and wages weakened noticeably. This change was accompanied by a break in the relationship between wages and prices, so wage inflation has become a much less important determinant of price inflation.
Keywords
- Type
- Chapter
- Information
- Publisher: Cambridge University PressPrint publication year: 2021
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