Why does Japan have a problem with deflation? -

Why is it so easy for Japan to fall into deflation? Their deflation problem started a decade ago right?

Back in the 70 s and 80 s almost everything sold in Japan was Japanese (except some luxury items from Europe and USA) This caused prices for things to be high...Like 500 yen for a apple Japanese were rich in the 80 s (Bubble economy) so paying those prices was not a big deal... After the bubble burst and land prices dropped...people started to conserve money and retail sales dropped. This caused some companies to import goods from China These goods are very cheap...and so prices...This forced many locally made goods to reduce prices.... This has kept prices down (and wages) and has caused deflation at times...