Japan’s increase of its interest rates to being from negative to positive for the first time in 17 years was a minor basis point change, yet it is significant in the grand scheme of things.

With a declining population, many women choosing to work, and a strict policy regarding dual nationality, it is difficult for the country’s economy to fight deflation relative to the rest of the world’s inflation rates, which have been too high.

Working hours in Tokyo exhibit a lifestyle far from the laid-back one of that in other economically developed countries and it is easy to see why stocks are soaring. However, the downside is that the foundations of family life could be at risk of being hollowed out.

Over the past year, the Nikkei 225 Index (consisting of Japan’s top 225 companies) has gone up by almost 50 per cent and this is the highest increase of almost any other economically developed country. Nevertheless, in order to make this interest rate rise effective, it might be invaluable to provide more favourable conditions for families to balance out the risks that depopulation has the propensity to have on deflation.

The value of the Japanese yen has held fairly strong against the USD. However, the interest rate rise will undoubtedly assist with putting exchange rate advantages for Japan more evidently back on the map, without it being at the expense of the general population.

With divorce rates now sitting at close to 50 per cent in some countries and many individuals choosing not to marry, it seems to be no wonder that the countries, whose populations are prioritising traditional family values the most have economies that are soaring.

India’s economy has grown the most over recent years, with growth reaching 8.4 per cent in Q3 of this financial year. and its population is booming, plus, I imagine that, for cultural reasons, divorce rates are very low. Whether women are valued equally to men yet is another important question, however, it appears that improvements are being made on this front, with many women now entering into good jobs.

It is evident that the correlation between population growth and economic growth is strong. Those countries that value family life are very much at the forefront of progress, even though this might appear to be going backwards to some.

‘Educating the mind without educating the heart is no education at all.’ – Aristotle.