As Wage-Hike Negotiations Fizzle, Can anything rescue Japan from the abyss?

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Unemployment has fallen to just 3.2pc, its lowest level since 1997. The ratio of available jobs to applicants also points to further declines in joblessness to come. More and more women and elderly Japanese have also re-entered the workforce to plug labour shortages. And yet wage inflation remains the elusive "missing ingredient" in Japan's nascent revival.

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In recent months, Abenomics feted "arrow" of central bank stimulus has been accused of overshooting to such an extent that it is now actively hindering wage growth and denting business confidence. 

Specifically, the Bank of Japan's landmark decision to enter negative interest rate territory at the end of January has ushered in a wave of panic rather than comfort over the power of central banks to stimulate moribund economies.

Negative interest rates have sparked global concerns over the profitability of commercial banks and led to stock price falls across the developed world.