Japan's relatively slow growth is the result of demography, not deflation . Japan grew slowly after its stock market collapsed in 1990. Prices rose to 1998 and then fell as inflation gave way to deflation. While prices rose the … [...]
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For many years now Japan has been plagued by deflation , which has retarded its economic growth; since 1981 the average annual growth of Japanese GDP has been only 2.1 percent. Deflation implies that the value of … [...] Larger and more frequent interventions become necessary to fend off debt deflations and recessions. Minsky correctly criticized neo-classical economics for largely minimizing the impact that financial markets can have on … [...] The Government and the Bank share the recognition that the critical challenge for Japan's economy is to overcome deflation as early as possible and to return to a sustainable growth path with price stability. The Government … [...] From that debt deflation (Fisher-style), the liquidity trap and the Keynesian multiplier emerge. And this provides a “rationale for expansionary fiscal policy”. Krugman called it a Fisher- Minsky ,Koo approach to the crisis, although … [...] In a bid to demonstrate its strong intention to ending deflation , the Bank of Japan decided Tuesday to expand a program designed to encourage financial institutions to approve more low-interest rate loans for companies with growth [...] Bank Of England’s Monetary Policy Committee member Paul Fisher claims that inflation is okay, deflation is bad. The fact that there is so much fake money [...] |
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Chinese and Japanese Deflationary Economies | James Hall …
The global economy has just hit the wall. Do not underestimate the significance of the Asian downturn. Japan saw a dramatic rebirth after WWII and China was transformed into an industrial powerhouse from the “Free [...]