Japan\u2019s \u201clost decades\u201d<\/a> as a cautionary tale of how deflation can become deeply entrenched if left unchecked.<\/p>\n\u201cJapan\u2019s experience has shown that once households form the expectation that prices won\u2019t rise over the medium to long term, it becomes nearly impossible to break that mindset,\u201d said He Xiaobei, a professor at Peking University\u2019s National School of Development.<\/p>\n
\u201cJapan has only just emerged from deflation \u2013 but that was largely driven by external shocks like the pandemic and the Russia-Ukraine war,\u201d she said, stressing that it was not caused by changing public expectations.<\/p>\n
The remarks came as the school released its quarterly report on China\u2019s economy on December 28, which urged the government to make reviving inflation the main goal of its monetary policy.<\/p>\n
Prices in China have remained largely flat for years, with the country\u2019s consumer price index growing at less than 1 per cent<\/a> for 33 months in a row and factory-gate prices stuck in a prolonged contraction that has lasted more than three years.<\/p>\n","protected":false},"excerpt":{"rendered":"As China grapples with persistent deflationary pressure, scholars from one of the country\u2019s top universities have urged the…\n","protected":false},"author":2,"featured_media":223246,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[2102,72,114,22002,12045,113,115209,61,60,582,115210,2032,115208,7912],"class_list":{"0":"post-223245","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-beijing","9":"tag-business","10":"tag-china","11":"tag-chinas-economy","12":"tag-deflation","13":"tag-economy","14":"tag-he-xiaobei","15":"tag-ie","16":"tag-ireland","17":"tag-japan","18":"tag-japans-lost-decades","19":"tag-peking-university","20":"tag-peking-universitys-national-development-school","21":"tag-russia-ukraine-war"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/223245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=223245"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/223245\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/223246"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=223245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=223245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=223245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}