http://www.euronews.com/ The Japanese Yen has gone through the 100 to the dollar mark for the first time since April 2009, and is now at a four-year low [...]
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Yasuhisa Shiozaki, a senior policy maker from the ruling Liberal Democratic Party of Japan, makes the case for the new brand of economics being espoused by [...] Yen appreciation has been aggravating Japan's chronic deflation , so some monetary easing is called for. However, for Japan , which did not experience a financial crisis of its own this time around, aggressive monetary easing … [...] … neoclassical economics has nothing to offer in way of solving the problems that it brings along – and why it is so important to get hold of the insights that Fisher, Keynes, Minsky and Krugman have given us on debt- deflation … [...] Since Abe's election, Japan has slipped back into deflation : FRED Graph. But inflation expectations, as measured by breakevens on the Japanese version of TIPS, are up – to 1%. So maybe we'll see this deflation turn around … [...] We should not read too much in one data-point. But we also should take it serious: there might well be some kind of deflation shock in Japan . Which adds some background to the aggressive reflation policies proposed by … [...] Significantly, he fails to consider Irving Fisher's The Debt Deflation Theory of Great Depressions and Hyman Minsky's The Financial Instability Hypothesis, which explain the theory underlying debt deflation . Conclusion … [...] |
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Guest Post: The Case Against Deflation | Zero Hedge
Japan was also in the grip of Keynesians and they stimulated like crazy but they still got deflation over decades, what makes you think it will work here when personal and business credit is not expanding…can the gov really … [...]