October 2014
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Calafia Beach Pundit: Still no signs of deflation

Japan's problems over the years are commonly attributed to deflation , but that ignores completely the fact that Japan's fiscal policies have been abysmally bad for decades (e.g., way too much government spending). Deflation [...]

MacroMania: Who's Afraid of Deflation?

Everyone knows that deflation is bad. Bad, bad, bad. Why is it bad? Well, we learned it in school. We learned it from the pundits on the news. The Great Depression. Japan . What, are you crazy? It's bad. Here, let [...]

Why the US economy is not doomed to a Japan-style deflation or …

10-yr sovereign yields in Germany have plunged to just under 1%, and Japanese yields are a mere 0.5%. U.S. 10-yr yields seem to be following suit, dropping from 3.0% at the end of last year to 2.34% today. Is the U.S. [...]

Economic Logic: Ageing and deflation in Japan

Ageing and deflation in Japan . Inflation rates across industrialized economies have been remarkably low in the past decades, and at the same time these economies have been subject to considerable demographic [...]


7. Japan's central bank will cancel all the government bonds that it has bought from the Japanese government. Japan's central bank will thus have less capital. The Japanese government will thus not have to pay 'interest',  … [...]

The Skeptical Speculator: BoJ sees end to Japan's deflation, US …

Japan reported on Friday that its consumer prices excluding fresh food fell 0.5 percent in March from the previous year, signalling continued deflation . There was no immediate reaction from the Bank of Japan . Its latest … [...]

The State as the Employer of last Resort ~ Global Labour Column

The deflationary exit strategy from the crisis advocated by the European elites can only lead to a long, painful recession. In the wake … Here, Minsky identifies two anti-unemployment strategies that are richly instructive [...]

The Economics Forum 21: The Minsky Moment: How Paul Krugman …

A ” Minsky Moment” in which both the lender (“patient capitalist”) and the borrower (“impatient capitalist”) finally realise that theirs is sheer “speculation” and that the “profits” they anticipated from production are not going to materialise …. But Krugman simply “has” to confront this problem – and he does, as we saw, when he acknowledges that “debt-deleveraging” (or Fisherian debt- deflationary ) “shocks” occur when our dear “patient and impatient” capitalists “suddenly … [...]

Japan to inflate its way out of deflation | Peace . Gold . Liberty

The new Bank of Japan (BoJ) Governor, Haruhiko Kuroda, started work on Thursday and his first day on the job disappointed investors. At a press conference, Kuroda pledged to do whatever it takes to defeat deflation and … [...]

Greece in the deadlock of the Troika's Austerity Trap – Global Labour …

As long as the Greek debt is considered unsustainable, liquidity and solvency problems will arise, rapidly multiply, and spread to the entire economy, which will continue to evolve through a “debt- deflation ” process with catastrophic … My answer is affirmative, and this institution is Hyman Minsky's “Employer of Last Resort” (ELR) programs (see e.g. Minsky 1986, Papadimitriou and Minsky 1994) that are unique countercyclical government initiatives that show evidence … [...]