Category Archives: Japan

This category focuses largely on matters pertaining to Japan

Bank of Japan is in charge not the bond markets

I read a report on the American news network CNBC the other day (November 15, 2016) – The bond vigilantes are back, and Trump better pay attention – which included some so-called experts in a video claiming to know something … Read the rest of this entry »

Posted in Central banking, Japan | 10 Comments

Japan’s unemployment rate decline is due to fiscal stimulus not ageing

In yesterday’s blog – Time for fiscal policy as we learn more about monetary policy ineffectiveness – I discussed, in part, the way that fiscal and monetary policy in Japan were working in a harmonious way, in contradistinction to the … Read the rest of this entry »

Posted in Japan | 9 Comments

The government has all the tools it needs, anytime, to resist recession

Several new articles have appeared in the last few weeks in the major media outlets expressing surprise that central banks have had little effect on economic growth despite the rather massive buildup of their ‘balance sheets’ via various types of … Read the rest of this entry »

Posted in Central banking, Economics, Japan | 26 Comments

Don’t fall for the AAA rating myth

We once believed the Earth was flat. Then someone sailed out to the edge and came back the other way or something like that with apologies to Pythagoras and others in 5BC. At some other point in history, alchemists were … Read the rest of this entry »

Posted in Fiscal Statements, Japan | 25 Comments

IMF recommends that firms should increase real wage growth in Japan

I read two articles/reports today about Japan. The first was a Fairfax article (March 21, 2016) from a journalist who invariably peddles the neoliberal economic myths. The second was from the IMF extolling the virtues of higher wages in Japan. … Read the rest of this entry »

Posted in IMF, Japan | 14 Comments

Japan – another week of humiliation for mainstream macroeconomics

In September 2010, The Project Syndicate, which markets itself as providing the “Smartest Op-Ed Articles from the World’s Thought Leaders” gave space to Martin Feldstein – Japan’s Savings Crisis. Like a cracked record, Feldstein rehearsed his usual idiotic claims that … Read the rest of this entry »

Posted in Central banking, Japan | 14 Comments

The folly of negative interest rates on bank reserves

On Friday (January 29, 2016), the Bank of Japan issued a seven-page document – Introduction of “Quantitative and Qualitative Monetary Easing with a Negative Interest Rate” – which left me confounded. Do they actually know what they are doing or … Read the rest of this entry »

Posted in Central banking, Japan | 18 Comments

Australian government fiscal outlook – irresponsible and will fail

Australia has been caught up in a almost national hysteria the last few days as the Federal government’s Mid-Year Economics and Fiscal Outlook (MYEFO) release approached. The MYEFO was released yesterday (December 15, 2015) and the sky is still firmly … Read the rest of this entry »

Posted in Fiscal Statements, Japan | 9 Comments

Takahashi Korekiyo was before Keynes and saved Japan from the Great Depression

This blog is really a two-part blog which is a follow up on previous blogs I have written about Overt Monetary Financing (OMF). The former head of the British Financial Services Authority, Adair Turner has just released a new paper … Read the rest of this entry »

Posted in Japan | 19 Comments

Japan needs to abandon its reliance on export growth

The economic news yesterday from Japan that the economy had contracted in the second-quarter 2015 by 0.4 per cent (Real GDP) on the back of a sharp drop in exports (-4.4 per cent) and private consumption (-0.8 per cent). The … Read the rest of this entry »

Posted in Japan | 10 Comments