BOJ's Kuroda Says Firms Remain Cautious on Spending

BOJ's Kuroda Says Firms Remain Cautious on Spending

Assessment

Interactive Video

Business

University

Hard

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The video discusses the weak momentum in business investment and corporate saving, particularly in Japan. Despite strong corporate earnings, firms remain cautious about increasing investments. The introduction of quantitative easing improved economic conditions, but corporate cash reserves continue to grow. Business investment focuses on maintenance rather than expansion. Wage growth is low, especially for full-time workers, despite a tight labor market. These trends suggest hesitancy in long-term commitments by firms.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What implications do the current trends in corporate cash and deposits have for future investments?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

Discuss the relationship between the unemployment rate and wage growth for full-time and part-time workers.

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