Apart from demographic issues and low inflation expectations, recent Japanese deflation was caused by global slowing and the strong yen, the hedonic effect of the Japanese technology nation, by lower fees (like lower scholarship fees) and good Japanese infrastructure and productivity. But which Japanese would renounce the newest technology because they think it will be cheaper next year?? So why avoid deflation that is mostly caused by technological improvements, but not by falling property prices like during the balance sheet recession? The balance sheet recession had already finished in 2010, deflation is no real ... (full story)