Financial Times (November 28)
“After 15 years in which the BoJ has failed to defeat deflation, the institution could do with some fresh thinking.” Facing a similar situation, the UK has appointed a Canadian to head the Bank of England, but “sadly, it is inconceivable that Japan would appoint a foreigner to lead one of its most important institutions.” Still there is hope that an outsider will be appointed. It is time to end “Japan’s overly timid anti-deflation policy.”
Tags: Bank of England, BOJ, Deflation, Fresh thinking, Japan, UK
Financial Times (September 6)
The U.S. is not “going the way of Japan,” according to Paul Sheard global chief economist at Nomura. There are similarities, both nations had massive asset bubbles, but “a series of policy errors” led to Japan’s lost decades. “Inflation and deflation are, at the end of the day, policy choices. US policymakers, by and large, have learnt the lessons from the policy mistakes of Japan and have applied them, so far reasonably successfully.”
Financial Times (August 29)
How long will Japan’s new Prime Minister Yoshihiko Noda, the sixth in 5 years, last? “To do better, Japan badly needs political stability,” and yet “Japan’s recent crop of leaders has underwhelmed.” Thankfully, the bureaucracy does a competent job of managing the country, but Japan remains “strategically adrift. The big questions of how it rebuilds after the tsunami, how it manages its debt, how it eradicates deflation and how it deals with China have been postponed or fudged.”
Institutional Investor (April 12)
“A silver lining was not what anyone expected to find in the radioactive cloud that fanned out from Japan’s Fukushima Daiichi nuclear plant following March 11’s devastating earthquake and tsunami.” Nevertheless, Institutional Investor believes ”the catastrophe may have been the catalyst the country needed to galvanize its stagnant economy and escape from decades of deflation.”
Tags: Deflation, Disaster, Earthquake, Japan, Radiation
Washington Post (November 15)
Columnist Robert J. Samuelson summarizes current thought on Japan. “It’s hard to remember now that in the 1980s Japan had the world’s most–admired economy….Nowadays, all we hear are warnings not to repeat Japan’s mistakes.” Samuelson, however, draws a different lesson from Japan. Many preach the importance (or sometimes danger) of government stimulus. Others point to the dangers of deflation. The key lesson Samuelson draws from Japan is the importance of job creation. “There is no substitute for vigorous private-sector job creation and investment, and that’s been missing in Japan.”
Columnist Robert J. Samuelson summarizes current thought on Japan. “It’s hard to remember now that in the 1980s Japan had the world’s most–admired economy….Nowadays, all we hear are warnings not to repeat Japan’s mistakes.” Samuelson, however, draws a different lesson from Japan. Many preach the importance (or sometimes danger) of government stimulus. Others point to the dangers of deflation. The key lesson Samuelson draws from Japan is the importance of job creation. “There is no substitute for vigorous private-sector job creation and investment, and that’s been missing in Japan.”
Tags: Deficit spending, Deflation, Japan, Job creation, Lost decade, Stimulus
The New York Times (October 16)
Fearing deflation, the Federal Reserve appears poised to adopt quantitative easing measures. The Fed is widely expected to print new money and buy Treasury bonds, hence increasing the money supply. The Fed can’t, however, succeed alone. The New York Times calls on President Obama and Congress to adopt new stimulus measures to kick start the economy. “To put millions of Americans back to work, a lot more needs to be done. Mr. Bernanke can’t do it alone.”
