The Trolley Car Problem – Part Two: Japan and Europe

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Having discussed the Federal Reserve's trolley car problem in part one, it's time to cross the travel abroad to see how similar issues are playing out in Japan and Europe.

Japan's trolley car problem

Kuroda Haruhiko and the Bank of Japan (BOJ)

Japan's inflation is rising quickly; however, monthly and annual levels are well below those in Europe or America. But, its reprieve from back-breaking inflation may not be long-lived. This is especially true if BOJ Governor Kuroda continues to employ an extremely easy monetary policy.

The graph below shows that cumulative inflation since 2000 was negative until 2014. Since then, it has perked up and, in the last year, has taken another leap higher.