
How The Economy Of Japan Could Predict The Next Decade
Economics Explained
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Quantitative Easing and Inflation in Japan
Quantitative easing involves a central bank creating money and then using that new money to buy up assets in the open market. Despite low interest rates and heavy quantitative easing over the past two decades, inflation in japan has remained stubbornly low. Some economists point to this as something that should comfort us. If sustained low interest rates n't cause any inflation in Japan, than it's unlikely to cause hyper inflation in our own economies.
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