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Hello. This week I will be looking at some exceptions to normal economic rules: specifically that wage-price spirals can be good and deflation isn’t always bad. The main piece will study Japan, an economy we also so often cast aside as an outlier, as I did last week. There is now the tantalising prospect that it might soon lose its special case status, but it is too early to be confident.
What are your favourite examples of deviations from normal economics? Email me at email@example.com.
Japan turning European?
Let’s first recap. Japan’s property and stock market bubble burst at the start of the 1990s, leaving the economy with persistently low growth, rock-bottom interest rates and periods of…