Japan's Economy Coming Up From The Ground

They say that April showers bring May flowers. Well, this month of April, it looks as if Japan's economy is blooming from the rains of deflation. The Japanese government changed Japan economy's status from "improving" to "picking up". The past several months, Japan has been in an economy crisis with the high deflation and all. However, Japan is still cautious about being optimistic about the economy. It shows that the stimulus packages that have been dispersed are improving business and consumer sentiment. It looks as if there is a bright future for Japan's economy, and the flower is starting to bloom again. However, instead of using stimulus packages, where they could suffer inflation, they are just going to use reserves to combat deflaton. Japan has set aside one trillion yen in its budget in order to combat the falling economy. However, from this point in time, deflation is decreasing, but the Japanese officials are saying that it's going to take a long time still to be completely rid of deflation. I discussed about the Bank of Japan easing monetary policy in a few posts back, and it looks as if the Bank of Japan will ease monetary policy further. In my opinion, it looks like Japan is doing whatever it takes to improve the current situation they are in without having dire consequences. Even though it's going to take a long time to combat deflation, I have faith in Japan's determination to make their economy back to normal.

Sources

http://online.wsj.com/article/BT-CO-20100416-704253.html?mod=WSJ_latestheadlines