
Japan Has a New Interest Rate: Zero.
Big Take
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Japan's Transition to Zero Interest Rates
Exploring Japan's recent shift from negative interest rates to zero range to combat low inflation, stimulate economic activity, and encourage investment. The chapter outlines Japan's struggle with stagnation, deflation, and the significance of the Bank of Japan's decision to raise interest rates after years of economic challenges. It discusses the impact on banks, businesses, consumers, and the strategy to maintain a positive inflation cycle for long-term economic growth.
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