BofAML Says Japan's Domestic Demand to Accelerate

The video discusses the economic outlook for Japan in 2018, highlighting optimism for global growth at 3.8%, which should benefit Japan's exports. Domestic demand, particularly CapEx, is expected to accelerate, supporting economic expansion. Inflation remains below the 2% target, but a gradual increase is anticipated, driven by wage growth and FX tailwinds. The Bank of Japan may adjust its yield target in late 2018. The disconnect between strong global growth and inflation is noted as a global issue, with the Phillips curve still relevant.

What does the text suggest about the relationship between global growth and inflation?

What is the significance of the Phillips curve in the context of the Japanese economy as mentioned in the text?