Category Archives: Japan

This category focuses largely on matters pertaining to Japan

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

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