CLSA's Smith on BOJ's Yield Cap

The video discusses the political influence on the Bank of Japan, highlighting the economic frustration due to stagnant wages and inflation. It analyzes the transition between governors and market expectations, emphasizing the need for a more hawkish approach. The critique of economic policies reveals failures in achieving promised outcomes, such as asset price inflation and effective lending. The discussion on wage negotiations and the tight labor market suggests that companies may need to increase wages to attract talent, given the severe skills shortage.

Discuss the significance of the upcoming wage negotiations in Japan and their potential outcomes.

What are the implications of the current labor market conditions in Japan for wage increases?

How do corporate profits compare to wage growth in Japan over the last 25 years?