Optimism about Japan’s recovery, concerns about its sustainability

It was a tiny increase, from zero to just 0.25 per cent, says Knowledge Wharton, but when the Bank of Japan raised interest rates this summer for the first time in six years, the little bump heralded the end of 15 years of a deflationary spiral and painful economic restructuring that has forever altered the Japanese way of life. Japan seems to be back on track economically, but Wharton faculty and analysts warn that the country may still hit some potholes down the road.