Hello knowledgeable people of JapanFinance. I’ll preface this by saying that I’m no economist so what I’m going to say might be totally stupid. If that’s the case please let me know. Also, English is not my first language.
So, this morning I saw the yoy data on M2 and M3 for march and it struck me as as somewhat odd that although real wages in Japan are/have been in negative territory for a long time and the consumption expenditures are only -0.5% (last reading), the money stock (simplifying, currency in circulation + deposits) is still rising at a 2.5% rate for M2 and 1.8% for M3. Is this a sign of a liquidity trap situation or is it just the result of inflation? Why is there so much “unproductive” money lying around? Also, no wonder that the yen is falling… What’s your take on the issue?
by Long-Cryptographer16