(NY Times) The U.S.-Japan inflation correlation chart–Following Japan's Trajectory Thus Far

Check it out courtesy of Floyd Norris.

Posted in * Culture-Watch, * Economics, Politics, * International News & Commentary, America/U.S.A., Asia, Credit Markets, Currency Markets, Economy, History, Japan, Politics in General, The U.S. Government

2 comments on “(NY Times) The U.S.-Japan inflation correlation chart–Following Japan's Trajectory Thus Far

  1. Terry Tee says:

    I would have thought that Japan as a major industrial power was dependent on imports, and that the rising price of raw materials and energy would counter-act the tendency to deflation. Clearly this is not happening. I have another query: surely inflation as a result of QE II will feed into prices and cause the US graph to return to an upward trajectory?

  2. Dorpsgek says:

    [blockquote] surely inflation as a result of QE II will feed into prices and cause the US graph to return to an upward trajectory? [/blockquote]
    Only if QE 2 is big enough, but all indications are it isn’t. Extra help from fiscal policy would help, but given the incoming Congress, that ain’t gonna happen.