Saturday, March 28, 2009

Japan: From Inflation to Deflation

Perhaps, because the language of Japan is not English that is why, we often forget that it is the second most important economy in the world just after the United states of America. The Japanese consumers buy a lot of goods and they also export a lot to the rest of the world. Now, because of the economic recession, the consumers in the country are very frustrated and they’re worried for their future. They’re also worried about their job security and they can clearly see now that the exports are falling for the country and that means that more and more jobs will be at stake in the country.

But as a result, people are now buying less amount of commodities and this is causing a lot of money is among the traders. So, Japan is heading for deflation because the demand is decreasing among consumers.