Targeted measures to push Japanese wages and inflation higher should be used instead of deploying additional monetary or fiscal stimulus, according to Takatoshi Ito, an adviser to Prime Minister Shinzo Abe.
The tight labor market is bringing long-awaited pay increases to some workers, but the practice of setting wages based on looking at past price trends needs to be abandoned to achieve the pay rises needed for sustainable inflation, said Ito, who is considered a candidate to be the next head of the Bank of Japan.
Unable to view this article?
This could be due to a conflict with your ad-blocking or security software.
Please add japantimes.co.jp and piano.io to your list of allowed sites.
If this does not resolve the issue or you are unable to add the domains to your allowlist, please see out this support page.
We humbly apologize for the inconvenience.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.