Okubo Says BOJ Needs Wage Inflation to Reach 2% Inflation

The video features QG Okubo, a chief economist at Japan Macro Advisors, discussing Japan's economic situation. Key topics include the impact of a strong yen and falling oil prices, the challenge of achieving a 2% inflation target without wage inflation, and the Bank of Japan's cautious approach to monetary easing. Despite eight quarters of growth, the BOJ is wary of repeating past mistakes of premature policy withdrawal. The strength of the yen is not yet a major concern for exporters, but could become one if it strengthens further.

What is a significant challenge for Japan in reaching its 2% inflation target?

• High interest rates

• Lack of wage inflation

• Strong yen

• Rising oil prices

Why might the Bank of Japan be hesitant to withdraw monetary easing prematurely?

• To align with the Fed's policies

• To support the strong yen

• Because of past painful experiences

• Due to high inflation rates

What historical event is mentioned as a reason for the Bank of Japan's cautious approach?

• The premature tightening in 2000 and 2006

• The financial crisis of 2008

• The dot-com bubble burst

• The Asian financial crisis

At what yen exchange rate might Japanese exporters start to worry?

• 105

• 110

• 95

• 100

How are Japanese exporters currently performing despite the yen's strength?

• They are breaking even

• They are facing losses

• They are enjoying record profits

• They are struggling to maintain profits