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The Japanese Economy - Inflation in sight? Watch

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    Apologies if this is in the wrong section.

    I am just curious as to why the Japanese economy is plauged by deflation when to me, the fundamentals look sound (low unemployment, massive trade surpluss)?

    I was also wondering whether an end is in sight, given that 2008 saw the highest inflation levels in 12 years and the YEN is currently strong with a fairly strong economy (3.5% ish growth during 2010). I can see that debt levels are very high, however is this the overiding factor?

    Or another question is, can an economy be undervalued?
 
 
 
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