Capital Economics' Thieliant Sees BOJ Running Into Constraints

The video discusses the current economic growth and the challenges posed by capacity constraints. It highlights the impact of a stronger yen on Japan's deflationary efforts and the Bank of Japan's limited policy options. The need for structural reforms, particularly in the labor market, is emphasized as a means to boost wage growth and inflation. The discussion also touches on the continuity of policy under potential leadership changes at the Bank of Japan.

What role do structural reforms play in addressing Japan's economic challenges according to the discussion?

How might deregulation of the labor market impact wage growth and inflation in Japan?