Category Archives: Japan

This category focuses largely on matters pertaining to Japan

Should we be concerned with a fall in the Nikkei?

Up until a while ago, it was the government bond market that was going to crash in Japan if the government didn’t do something serious about implementing fiscal austerity. The bond market is still very healthy and yields are very … Read the rest of this entry »

Posted in Japan | 14 Comments

Japan’s growth slows under tax hikes but the OECD want more

The OECD yesterday released their interim Economic Outlook and claimed that real economic growth around the world was slowing because of a lack of spending. Correct. But then they determined that structural reforms and further fiscal contraction was required in … Read the rest of this entry »

Posted in Economics, Japan | 7 Comments

Our poster child keeps exposing the myths

A regular occurrence is the prediction of doom for Japan. Some minor upturn in Japanese government bond yields or a movement in some other irrelevant financial statistic relating to the Japanese public sector sends the financial press into apoplexy. But … Read the rest of this entry »

Posted in Eurozone, Japan | 13 Comments

Japan will (yet) run out of money. Never!

A regular occurrence is the prediction of doom for Japan. Some minor upturn in Japanese government bond yields or a movement in some other irrelevant financial statistic relating to the Japanese public sector sends the financial press into apoplexy. The … Read the rest of this entry »

Posted in Economics, Japan | 9 Comments

IMF still away with the pixies

The abysmal performance of the IMF in recent years has been one of the side stories of the Global Financial Crisis. They have consistently hectored nations about cutting deficits using models that were subsequently shown to be deeply flawed. They … Read the rest of this entry »

Posted in IMF, Japan | 7 Comments

The last eruption of Mount Fuji was 305 years ago

Humans are very habitual. In Japan as elsewhere. It seems that a regular occurrence in Japan is that some career-minded economist comes out and predicts the end. The end can come in various projected forms. Hyperinflation, government bankruptcy, bond markets … Read the rest of this entry »

Posted in Japan | 20 Comments

It’s simple math

Have you ever examined the Japanese yield curve? I check it on a daily basis. At present, it looks to have a normal shape (longer-maturities with slightly higher yields) than near-term assets. It is also quite low – like really … Read the rest of this entry »

Posted in Economics, Japan | 5 Comments

Japan thinks it is Greece but cannot remember 1997

Last week (August 10, 2012) the Japanese Parliament approved a bill to double the sales tax (from 5 per cent to 10 per cent) over the next three years. It is a case of déjà vu. We have been there … Read the rest of this entry »

Posted in Japan | 10 Comments

Japan grows – expansionary fiscal policy works!

I have been noticing that a new narrative is coming out of the financial journalists acting as mouthpieces for various politicians and neo-liberal think-tanks around the place – along the lines that we have got it wrong – the debate … Read the rest of this entry »

Posted in Economics, Japan | 3 Comments

A fiscal collapse is imminent – when? – sometime!

Sometimes I wonder how it is that a bright person can stick to a story for so long when the evidential record is so contrary to the predictions that their story keeps forcing them to make. Then again the predictions … Read the rest of this entry »

Posted in Economics, Japan | 12 Comments