In one regard, Japan is somewhat comparable to the US: conditions in the labour market are tight, but wages are not rising.

The official unemployment rate was only 2.8% in April, the lowest since 1994. To find a time when the jobs-to-applicants ratio was as low as it is today in Japan we have to go back to the 1970s.

However, total wages were unchanged in April from a year earlier and real wages even fell by 0.2%. This does not mean that the consumer has no spending power, because employment is increasing.

Read more here for more on Japan’s recent economic performance and likely central bank policy.