Is Japan overheating?

Japan’s economy recorded an eighth consecutive quarter of growth in Q4, the longest uninterrupted run of expansion since the late 1980s. Unemployment is very low, inflation has started to pick up, condominium prices have soared and credit growth is the strongest it has been since the 1980s bubble. However, private debt remains low relative to output. And with wages barely rising and inflation likely to remain well below the Bank of Japan’s target for the foreseeable future, this doesn’t add up to overheating.