A noteworthy development today reported by Reuters is IMF: Japan must raise sales tax to show fiscal commitment | Reuters
"The International
Monetary Fund urged the Japanese government on Tuesday to raise the
country's sales tax and reform its welfare system to demonstrate a
commitment to fiscal reform."
Japan's parliament is considering a plan to double sales tax rates by 2015. Similar proposals over the years since the end of the country's boom in the early 1990's have generally been rejected as being likely to harm domestic consumption. The same issue is still relevant, but the need for more tax revenue is more pressing now.
This fiscal action would be deflationary, at a time when the country is arguably already experiencing deflation.
Japan Real Time Charts and Data
Edward Hugh is only able to update this blog from time to time, but he does run a lively Twitter account with plenty of Japan related comment. He also maintains a collection of constantly updated Japan data charts with short updates on a Storify dedicated page Is Japan Once More Back in Deflation?
