What can we learn from Japan?

Looking at the Japanese economy provides many valuable insights into how economies work. In particular: A persistently expansionary monetary policy does not lead to a lasting rise in inflation if wage growth does not accelerate ; i t does not necessarily have a long-term effect on the exchange rate; it leads to a sharp rise in asset prices in the long term; Any public debt ratio remains acceptable without a crisis if long-term interest rates remain near zero. This gives rise to a tight constraint for monetary policy; A skewed income distribution against wage earners makes it possible to avoid inflation and rising interest rates, but it leads to inefficient excess corporate savings; Population ageing does not necessarily lead to inflation, a fall in the savings rate or an external deficit.