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With inflation taking centre stage this year, most central banks worldwide have begun raising key interest rates to combat inflationary pressures. The Bank of Japan,

With inflation taking centre stage this year, most central banks worldwide have begun raising key interest rates to combat inflationary pressures. The Bank of Japan, however, has yet to do so. Explain why this is the case, and discuss the implications of policy divergence on the Japanese Yen and the Japanese economy

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