Category Archives: Japan

This category focuses largely on matters pertaining to Japan

Lower bond yields do not save the Japanese Government money

I was going to write about the situation in Timor-Leste after its national elections were held on Saturday. But I will hold that over for another day as I get some more information. So today, I think we can learn … Read the rest of this entry »

Posted in Economics, Fiscal Statements, Japan | 3 Comments

Trade and finance mysteries – Part 2

I was running late yesterday and the blog post was already rather long so I left some matters concerning central banks for today. The question we address briefly today is what is the role of central banks in all these … Read the rest of this entry »

Posted in Central banking, Debriefing 101, Fiscal Statements, Japan | 32 Comments

Bank of Japan’s QE strategy is failing

On April 20, 1018, the IMF presented its – Asia and Pacfic Department Press Briefing – in conjunction with the release of the April 2018 World Economic Outlook and the upcoming (May 9, 2018) release of its Asia and Pacific … Read the rest of this entry »

Posted in Central banking, Japan | 23 Comments

Japan is different, right? Wrong! Fiscal policy works

Japan is different, right? Japan has a different culture, right? Japan has sustained low unemployment, low inflation, low interest rates, high public deficits and high gross public debt for 25 years, but that is cultural, right? Even the mainstream media … Read the rest of this entry »

Posted in Fiscal Statements, Japan | 18 Comments

When economists ignore the elephant called reality and applicability

I have sat through many economic seminars in my time where there is a sense of suspended reality necessary so the presenter can run through the exercise of bringing their latest research idea to the academic community. This suspended reality … Read the rest of this entry »

Posted in Eurozone, Japan, US economy | 25 Comments

Currency-issuing governments never have to worry about bond markets

How many times have to heard a politician claim they had to cut government spending and move the fiscal balance to surplus because they had to engender the confidence of the bond markets. Apparently, this narrative alleges that if bond … Read the rest of this entry »

Posted in Central banking, Debriefing 101, Economics, Japan | 22 Comments

Even more evidence that the US labour market is below full employment

Regular readers will know that I have been investigating how close the US is to full employment, given that various commentators and conservative types have been trying to claim it is and that, as a result, the US government should … Read the rest of this entry »

Posted in Japan, Labour Force, US economy | 8 Comments

More fun in Japanese bond markets

The Japanese bond market has been very interesting in the last week proving yet again that private bond markets cannot set yields on government bonds if the government does want then too. Next time you hear some mainstream economist claiming … Read the rest of this entry »

Posted in Japan | 21 Comments

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