Bank of Japan's $6.7 Trillion Stimulus Fails to Ignite Wages or Growth
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The Bank of Japan has purchased over 1 quadrillion yen ($6.7 trillion) in assets over the last decade, equivalent to the GDP of Japan, France and China combined.
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Despite this huge stimulus, Japan's economy has seen surprisingly little benefit - interest rates remain at or below zero, wages are stagnant, and reforms have stalled.
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The Bank of Japan's policies have helped calm financial risks, but also reduced incentives for companies to restructure and innovate.
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Corporate Japan is thriving thanks to shareholder-friendly reforms, but workers have not benefited from significant wage increases.
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Lack of bold reforms has left Japan struggling to avoid recession, still reliant on Bank of Japan stimulus rather than fundamental economic change.