In addition, as many Japanese firms have essentially maintained their labor, supply-side constraints in Japan have not been as severe as in the U.S., and there has been no pressing need for firms to raise wages and selling prices.
To sum up, in response to the common shock of the pandemic, the U.S. and Japan have been restarting their economic activities by making the most of their respective characteristics -that is, for the U.S., high mobility in the labor market and flexible adjustments in wages and prices, and for Japan, long-term and stable employment as well as a robust supply system.