In Japan, inflationary forces have been outweighed by excess savings

The question is now often asked whether inflationary forces (population ageing, reshoring, energy transition, strong monetary expansion) will lead to a return of inflation in the future in the United States and the euro zone, despite the existence of a deflationary force, namely excess savings. In Japan, there are many inflationary forces and there is also a large savings surplus, among companies. There has been a complete lack of inflation in Japan, except during drastic depreciations of the yen or VAT hikes. This shows that excess savings prevent inflation even when several inflationary mechanisms are present.