TOKYO (AP) — Japan's consumer price index fell 0.9 percent in March from a year earlier, underlining the challenge of ending a long spell of debilitating deflation despite an onslaught of monetary easing and stimulus … [...]
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Soon a fucking Seven-Eleven going tits up will require ECB intervention: This was all predicted by Minsky in his treatise, the “Financial Instability Hypothesis”, which I summarized in my own style, here: ” Minsky v.s. [...] In December 1999 Ben Bernanke delivered a paper titled Japanese Monetary Policy: A Case of Self-Induced Paralysis? whereby he criticized the Bank of Japan for not doing enough to stem the deflation that had plagued … [...] He channels the late economist Hyman Minsky , saying the economy is now in Minsky's “Ponzi finance” phase, “when additional credit would be required just to cover increasingly burdensome interest payments, with accelerating inflation the end result.” … The choices are varied: cash to help protect against an inflationary expansion or just the opposite – long Treasuries to take advantage of a deflationary bust; real assets; emerging market equities, etc. One of our … [...] The topic of deflation has risen to new heights in Japan because the new Prime Minister has promised to fight deflation and to set new [...] But what about a debt- deflationary driven recession, such as described by Prof. Irving Singer or Hyman Minsky as an explanation for the Great Depression? In that case, deflation isn't a positive, but a negative, and the deeper … [...] That will be a new and intense problem, especially hyperinflation, but for now, the disinflationary and deflationary scenario's are far more important. Look at Japan's funk for the last twenty years; deflation can be nasty and will … [...] Japan's deflationary incident is now in its second decade. The indicator is now in Neutral territory so the bulls and bears are fighting it out. A move lower is consitent with falling equity markets and a move higher is in concert … [...] ECRI has just updated its Japanese Future Inflation Gauge (JAFIG). The value of this forward-looking gauge lies in its ability to predict cyclical turns in Japanese [...] The Japanese government's mid-year economic forecast states that the country will recover from its decades-long deflation next year, after being held back by falling prices and weak economic growth for the past [...] |
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