"Japan's Economic Resurgence: Escaping Deflation and Avoiding a 'Lost Decade' Scenario"

Japan's central bank raised interest rates above zero for the first time in 17 years, signaling the end of the country's 30-year economic slump. Recent wage negotiations and rising prices indicate a shift towards normal inflation, with headlining inflation reaching 2.8% in February. The country's stock markets have surpassed records set in 1989, and indicators such as a tighter labor market, increased entrepreneurship, and foreign investment suggest that Japan's economy is back on track. However, the aging population remains a significant challenge, with the government looking to robots and automation to expand the workforce, while others see demographic change as an opportunity for economic revitalization.