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(From Journal of Japanese Trade & Industry (JJTI))
Byline: Tani Sadafumi
Japan's finance capital markets are somewhat unusual. While the stock market has fallen over the long term, bond market prices have steadily increased, that means long-term interest rates have dropped to a historic low. In the short-term money markets, we see negative interest transactions, in which borrowers can actually receive interest. The markets are a mirror: they reflect the health of the economy. The distortions of the deflation-plagued Japanese economy are clearly reflected in this mirror. The Nikkei stock average fell below \8,000 on March 31, the date that marks the end ...