Jun
04

Disappearing Inflation

Adding to the low inflation environment we’re in, is Japan’s central-bank bond buying. By reducing the value of the Yen by about 20% in just a few months, it has made buying Japanese cars and other Japanese goods cheaper. And that puts downward pressure on prices of substitute goods. For example, to hold domestic market share, US automakers must minimize price increases by keeping wage growth low and strong-arming suppliers.

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