Abenomics: what’s left in the quiver?

Aggregate wage income

We believe the decline in real wages should prove temporary. If firms can charge higher prices without paying higher wages, their profits will increase. Fatter profits will encourage firms to expand their operations and tempt new rivals to enter the market. That in turn will increase hiring and, in time, bid up wages to match the higher prices. The reflection of Japan’s economy should be a prelude to higher real wages not a threat to them.
Miyuki Kashima, Head of Japanese Equity Investment, BNY Mellon Asset Management Japan

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