Market Turmoil and Global Implications

This chapter explores the recent upheaval in global markets driven by weak U.S. job data and the impact of the yen carry trade amidst Bank of Japan's policy shifts. It discusses deflationary pressures in Japan, inflation concerns, and the interplay between central banks, particularly the Fed and BOJ. The implications for Japan's economy are assessed, particularly in relation to GDP growth, household purchasing power, and the challenges posed by rising wages.