The Japanese Deflation Myth: A Look At CPI

The Japanese Deflation Myth and the Yen’s Slump by Brendan Brown, Ludwing von Mises Institute The slide of the yen since late summer has brought it to a level some 40 percent lower against the euro and US dollar than just two years go. Yet still Japan’s Prime Minister Shinzo Abe and his central bank chief Haruhiko Kuroda warn that they have not won the battle against deflation. That caution is absurd — all the more so in view of the fact that there was no deflation in the first place. Some cynics suggest that Abe’s and Haruhiko’s battle cry…