J
Who became Japan’s first female prime minister?
Sanae Takaichi
What phrase is used to describe the increase in ice cream prices?
price-hike
= an increase in price
What product increased in price by 10 yen?
Ice cream
About how much is 10 yen in US dollars?
0.06 US dollars
Which word is used to describe a very big change in Japan’s economy?
Seismic
= very large and important (a big change)
What major economic change is Japan experiencing?
Inflation and Deflation
What word is used to describe Japan’s first female prime minister?
Inaugural
Which word shows that rice represents one of Japan’s biggest challenges?
Emblematic
= representing something important
Since when has the yen weakened against the dollar to a level not seen before?
the early 90s
What happened to the price of rice after 2023?
The price of rice surged
What inflation rate did Japan exceed in 2023?
What is the BOJ’s inflation target?
4%
2%
What does the word “stagnant” describe about prices in Japan for decades?
They did not increase and sometimes even fell
= not growing or changing
Why did the weak yen cause higher prices in Japan?
Because imports became more expensive
Which word means “deeply fixed and difficult to change”?
entrench
What happened to asset prices after the bubble burst in the late 1980s?
They plummeted
plummet = fall suddenly and sharply
What kind of policy did the Bank of Japan use to fight deflation?
(related to money, interest rates, central banks )
Monetary policy
How did inflation affect real wages in Japan?
Real wages declined
Why did Japan “import inflation”?
Japan imports most of its energy, so higher global prices raised costs
What two massive forces broke Japan’s deflation cycle?
The COVID-19 pandemic ( the lockdown in 2020) and the Ukraine war
How large is Japan’s national debt compared to its GDP?
Over 200% of GDP.
What is meant by a “virtuous cycle” in Japan’s inflation strategy?
Prices rise, wages increase, and people spend more.
virtuous cycle = good chain reaction
How does inflation change people’s mindset in Japan?
People accept that prices will rise and adjust their lifestyles
Why does Japan want inflation but not too much inflation?
Moderate inflation encourages spending, but high inflation causes instability.
What economic story does this listening tell about Japan?
Japan’s shift from long-term deflation to rising inflation.
Why Japan’s Economy Is at a Tipping Point?
Because Japan is shifting from long-term deflation to rising inflation, creating both opportunities and risks.