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Abenomics Is Working, Don't Stop Now
Japan is on track for its longest postwar economic expansion, with female labor force participation and corporate profits at record highs and unemployment at a 25-year low. All this good news has caused many observers to question whether the goal of raising inflation to 2 percent is really necessary. Why not settle for trend inflation between 0 and 1 percent, where it is now?[1] The answer is that the Bank of Japan (BOJ) has no room to maneuver when the next downturn arrives, as it surely will someday. Unless Japan returns inflation sustainably to 2 percent or more in the next few years, it will have difficulty ... (full story)