All That Matters is Nominal GDP, Japan Edition
From the summary of “Basic Policies for Economic and Fiscal Management and Reform” from the Cabinet Office in Japan – what macro policy vision does Abe’s Cabinet have?
Macroeconomic vision that Japan should aim for in a new decade of revival
• Labor productivity growth by 2 percent or more in the medium- to long-term with a faster increase in wages than prices, accompanied by increased job opportunities
• Growth of gross domestic product (GDP) by around 3 percent in nominal terms and around 2 percent in real terms, with a higher growth rate to be set for the late 2010s
• Under the conditions specified above, it is expected that nominal gross national income (nominal GNI) per capita will grow by more than 3 percent in the medium- to long-term, resulting in an increase of 1.5 million yen or more in 10 years.