Faced with the highest contraction since the pandemic, weak GDP readings, expected 4-5% real wage increases to counter inflation and wide speculation that BOJ will scrap its negative interest rate. Japan has come a long way since its resurrections due to the Korean war, then in 1980's came the realization to Americans that Japan was a threat like the Soviet Union, then 1990's when Japanese economy faded. Now in 2024 On Feb. 22, the Nikkei 225 closed at 39,098.68 breaking the record it set 43 yrs back. However the same time it again slipped into recession losing its 3rd place to Germany. One of the most common explanations being that BOJ's continuous financial deregulation, changed the economy from deflation to inflation in recent years. However commodity prices are rising sharply. but ordinary people's earnings (especially wages) aren't keeping pace.