This podcast episode explores Japan's economic transformation, highlighting its high GDP growth and equity indices. The speakers discuss the emerging virtuous cycle of rising wages and prices, driven by changing social norms and a tight labor market. They also cover the outlook for Japan's private capital expenditure and the potential impact of yen depreciation on the rate path. Additionally, the podcast discusses the improved outlook for Japan's equities and return on equity, with a shift from deflation to a turnaround in the market. The potential impact of corporate governance reform on further enhancing Japan's return on equity is also discussed. Overall, the episode highlights the positive trajectory of Japan's economy and equity market.
