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Japan's Falling Prices

We look at why prices are falling in Japan, and what that means for its economy. Falling prices hit company profits, and by increasing the real burden of debt, they deter new investment too.

The land of the rising sun also seems fated to be the land of falling prices. For a year or more, Japan has been stuck in deflation, a recurring problem for the world's second biggest economy over the last two decades.

Falling prices hit company profits, and by increasing the real burden of debt, they deter new investment too. And companies have to battle hard with their rivals, to get thrifty consumers to buy their goods. The Βι¶ΉΤΌΕΔ's Roland Buerk reports on the price war between lunch restaurants in Tokyo.

Why is Japan so vulnerable to deflation?
Lesley Curwen asks Ken Cukier, the Japan business and finance correspondent for The Economist.

Plus, can business students learn lessons from the British artist Damien Hirst? We hear from Jamie Anderson, Professor of Strategic Management at TiasNimbas Business School at Tilburg University in the Netherlands.

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18 minutes

Last on

Mon 19 Apr 2010 01:40GMT

Broadcasts

  • Fri 16 Apr 2010 07:32GMT
  • Fri 16 Apr 2010 18:40GMT
  • Mon 19 Apr 2010 01:40GMT

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