With yet another month of data indicating falling real wages in Japan and amid further currency depreciation in China, we got to thinking that maybe these two countries are in a race to win the most exemplar financial repressor award for 2014. Indeed, the below non-exhaustive list of key criterion to be considered a financial repressor are all currently being met by both countries:
So there you have it. Both counties are engaging in a set of policies aimed at transferring income from the household sector to the state and/or private business sector. Unfortunately, unlike the Kentucky Durby, it will take a little longer than two minutes to determine the outcome.