Japan's central bank chief is keeping a close eye on one thing: will wages and prices keep feeding off each other? That sustained cycle matters. A lot. It's the make-or-break factor in their next policy move. No spiral, no shift. Inflation without income growth? That's a dead end for tightening. The decision hinges entirely on whether workers actually pocket raises that stick—and whether businesses pass those costs along consistently. Everything else is noise.
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StableGenius
· 30m ago
lmao the BoJ really out here playing spot-the-difference with a wage-price spiral that probably doesn't exist. empirically speaking, pass-through mechanics in mature economies are way messier than this "no spiral = status quo" narrative suggests. they're gonna hike anyway, watch.
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LiquidationWatcher
· 12-01 02:19
The Bank of Japan is really gambling on whether wages can keep up with prices... If you ask me, the spiral is truly terrifying; without the spiral, policies would have to be readjusted.
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MemeCurator
· 12-01 02:19
Once the wage rise cycle starts, it simply cannot be stopped. The Bank of Japan has really bet everything on this.
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GasBankrupter
· 12-01 02:13
Wages and prices feed each other... sounds like a vicious cycle, the Bank of Japan has to bet right this time.
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WalletDetective
· 12-01 02:12
Simply put, it's a gamble on whether the wage increase can withstand inflation; if it really can't keep up, the Central Bank has no solution.
Japan's central bank chief is keeping a close eye on one thing: will wages and prices keep feeding off each other? That sustained cycle matters. A lot. It's the make-or-break factor in their next policy move. No spiral, no shift. Inflation without income growth? That's a dead end for tightening. The decision hinges entirely on whether workers actually pocket raises that stick—and whether businesses pass those costs along consistently. Everything else is noise.