Credit Suisse Says Japan Inflation Won't Reach 2%

The video discusses Japan's labor market tightness, highlighting a high jobs-to-applicant ratio but stagnant wage growth due to low productivity. It debates the Bank of Japan's 2% inflation target, considering market reactions and the impact of an aging population on GDP and consumption. The challenges of Japan's monetary policy, including yield curve control and bond purchases, are explored, with potential outcomes like low interest rates and a bubble in Japanese equity.

What are the implications of low productivity on wage growth in Japan?

Discuss the potential consequences if Japan does not achieve its inflation target.