Its not a matter about whether you drew a table or not, but
rather how you explained yourself.
I would say it is much easier to argue that Japan's inflation is
more damaging and persistent.
1). Brazil is experiencing demand pull and cost push inflation,
together with signs of economic growth-when incomes of people
rises, it helps to offset the effects of inflation eroding the
value of money, whereas for Japan, it is encountering low
inflation, which means people's incomes are stagnating, yet
inflation is further eroding their monies
2). If you read the news, Japan's central bank has already hit
rock bottom in terms of reducing interest rates (liquidity trap),
recently going into negative interest rate territory, that means
Japanese banks pay people to borrow to consume, which results in a
lack of liquidity for banks and they go bust. Brazil, meanwhile has
much more leeway in terms of monetary policy.
3). Brazil's problems can be easily tackled. For example, its
inflation was mainly also caused by excessive government spending
on transfer payments. When incomes of Brazilians increase, they
automatically pay more taxes, government welfare payments
automatically reduce, which therefore acts to dampen demand pull
inflation, also with economic growth, cyclical unemployment will
reduce, therefore government doesnt have to pump in as much monies
to reduce unemployment (which is also a cause of inflation
stated)
4). As for Japan, the government also decided to implement a
sales tax, which will negate any interest rate measure since it
further deters people from spending, therefore in the long run
likely to be persistent.
5). Brazil's monetary policy has also not kicked in
yet.
6). I think for Japan, it was mentioned clearly in the extract
that with the low inflation, there was a production drop. I believe
the low inflation rate will not help to increase production because
the low production was caused by the sales tax. Unless you remove
the sales tax, then production will improve.
7). The focus of the last question should also be on comparison.
If your entire essay is on how damaging high inflation is or how
damaging low inflation is, i am sure it is not acceptable. Both
countries are facing issues with their inflationary problems, we
should zero in and talk about which country is likely to be more
affected by their inflation based on their action plans and type of
inflation.
CA question would require an opportunity cost explanation
coupled with factor endowment, with major antithesises being
India's protectionism, transport costs, increasing opportunity
costs of production.