Japan Macro Advisors' Okubo on Japan Inflation

The transcript discusses the economic expansion in Japan, focusing on inflation expectations and the labor market's flexibility. It highlights the Bank of Japan's (BOJ) prediction of reaching 2% inflation by 2019, despite market skepticism. The conversation explores the labor market's structural changes, including increased participation of women and the elderly. It also credits Prime Minister Abe and BOJ Governor Kuroda for their roles in Japan's economic achievements over the past five years.

What is the Bank of Japan's prediction for reaching 2% inflation?

• By 2021

• By 2018

• By 2020

• By 2019

Why is the concept of full employment considered lower now compared to the 1990s?

• Because of higher unemployment rates

• Because of decreased labor force participation

• Due to increased automation

• Due to more labor market flexibility

Which demographic groups have contributed to Japan's labor market flexibility?

• Students and freelancers

• Immigrants and part-time workers

• Female labor force and elderly population

• Young professionals and expatriates

Who is credited with Japan's economic achievements over the past five years?

• The Ministry of Finance

• Prime Minister Abe and Kuroda

• The Japanese Parliament

• The Bank of Japan

What might companies need to do to attract more workers as labor market conditions tighten?

• Provide free training programs

• Reduce working hours

• Increase wages

• Offer more vacation days