Japan Salaries Extend Slide as Inflation Begins to Take Root – Bloomberg

Stagflation seems to be the inevitable result of Abe’s attempts to restart the economy. Moreover this is apparent even ahead of the economic cliff in April.

Abe needs to press forward with economic reforms and participation in the TPP talks. Raising the sales tax needs to be scrapped in favor of taxes that encourage more investments, i.e., energy efficiency and carbon reduction. Finally Abe needs to take steps to encourage innovation and startups.