An evidence of low inflation has limited negative impacts on good markets as well as labour markets

Japan's unemployment rate has fallen to the lowest level in 20 years when the inflation rate falls as well. The unemployment rate fell from 3.4% to 3.1%, showing a strong performance in the domestic labour market. The strong performance in the labour market shows many companies have confidence of their own future performances and future Japanese economic growth. The Japanese government has used many fiscal tools, the Bank of Japan has also expanded its monetary policy. They hope to use their policies to raise the domestic inflation rate. However, all these policies seem insufficient as the inflation rate stays low. Therefore, we can see that low inflation rates have relatively limited impacts on labour markets as well as good markets