Asks about Tokyo CPI data and implications for Japan's economy and BOJ policy.
Shery
Nathan Sheets
Japan has entered the post-deflation chapter. Economy is solid, consumer supported by wage gains, fiscal stimulus coming. Allows BOJ to start thinking about a neutral rate.
Asks if BOJ's cautious pace makes sense and why yen remains weak if normalization path is understood.
Shery
Nathan Sheets
BOJ should normalize, but caution is due to history of deflation. Yen weak because Japanese rates are lower than other majors and markets are impatient for faster normalization.
Asks about impact of US tariff uncertainty on global economy and inflation.
Haidi
Nathan Sheets
US tariffs are a source of uncertainty, but global economy has shown resilience in 2025 despite it.
Asks if investors/economists are too sanguine about risks.
Haidi
Nathan Sheets
Struggling with this - each year starts cautious but global growth ends at trend, shaking off shocks like Ukraine war and rate hikes. Valuations seem aggressive but it's a tough call.
Asks if AI changes the game, specifically regarding memory chip shortage and inflation.
Shery
Nathan Sheets
AI is a huge driver of US investment and trade (AI exports). Key AI inputs are in high demand, giving producers pricing power, but AI investment is crowding out investment in other electronics.
Asks if we can confidently model AI impact on labor market and productivity.
Haidi
Nathan Sheets
Comfortable modeling productivity lift (similar to internet era). Labor market impact is the big unknown - new technologies always create new jobs, but the challenge is predicting what those are.
Asks if AI reduces need for population growth, benefiting aging economies like Japan/Korea/China.
Shery
Nathan Sheets
AI may mitigate challenges of global aging and adverse demographics by reducing reliance on large workforces.