Shirai: Raising Japan's Policy Rates Won't Help Lower Inflation

The video discusses Japan's fiscal measures under Prime Minister Kishida, focusing on their moderate impact on consumer spending and GDP. It explores the lack of coordination between the government and the BOJ in addressing inflation, which is primarily driven by global commodity prices. The discussion covers the yen's depreciation, the BOJ's monetary policy, and potential adjustments in yield curve control. The video also touches on consumer price adjustments by companies like Asahi, reflecting inflationary pressures.

What is the primary goal of the Japanese government's fiscal package?

• To reduce national debt

• To increase exports

• To strengthen the yen

• To boost consumer spending

What is the main source of Japan's current inflation according to the transcript?

• Rising wages

• Government spending

• Global commodity prices

• Increased consumer demand

How does the government plan to support those affected by high energy prices?

• By reducing taxes

• By providing targeted policies

• By lowering interest rates

• By increasing wages

What is a potential consequence of the government's spending plan on the yen?

• No impact on the yen

• Stabilization of the yen

• Depreciation of the yen

• Strengthening of the yen

What is the Bank of Japan's stance on yield curve control?

• They will increase the target range

• They plan to abandon it

• They want to maintain it

• They are undecided

How are companies reacting to increased input costs?

• By immediately raising prices

• By reducing production

• By absorbing the costs

• By cautiously passing costs to consumers

What is the expected change in Japan's economic growth forecast for 2022?

• Increase to 4%

• Decrease to 2%

• Remain at 3.8%

• Increase to 5%