JPMorgan's Ugai Sees Japan Reaching 2% Target in 5 Years

The video discusses the challenges in achieving Japan's inflation target, highlighting the need for prolonged labor market tightening. It examines the BOJ's stimulus program and the cautious approach of companies towards wage increases due to the seniority-based wage system. The current low unemployment rate is analyzed, with predictions on how it might affect inflation in the coming years.

What is the significance of the Japanese seniority-based wage system in the context of wage increases?

What does the speaker suggest is necessary to raise inflation to 2%?