Abstract  Despite the recent strong economic recovery, growth in wages and prices has been sluggish across the globe. Japan has come to face this issue ahead of any others. The policy authorities of each economy could learn something from the case study of Japan.
This article will examine some factors that have restrained growth in wages and prices in Japan, and discuss the desired policy responses to address this issue. In relation to the theme of this session – inequality, wages, and growth – factors responsible for this curb on growth in wages and prices can be divided primarily into two categories.