Category Archives: Japan

This category focuses largely on matters pertaining to Japan

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

Japan – signs of growth but grey clouds remain

The Wall Street Journal reported late yesterday (May 20, 2015) that – Japan’s First-Quarter GDP Growth Is Fastest in a Year. This follows the release of the latest national accounts data from the Japanese Ministry of Finance. The WSJ was … Read the rest of this entry »

Posted in Japan | 12 Comments

Japan returns to 1997 – idiocy rules!

The financial press was ‘surprised’ that Japan had slipped back into recession, which just tells you that their sources don’t know much about how monetary economies operate. Clearly they have had their heads buried in IMF literature, which tells everyone … Read the rest of this entry »

Posted in Japan | 9 Comments

Japan demonstrates the real limits on government spending

Last week, Reuters put out a story (October 30, 2014) – Special Report: Tsunami evacuees caught in $30 billion Japan money trap (thanks Scott Mc for the link) – which provides an excellent demonstration of the true limits of government … Read the rest of this entry »

Posted in Inflation, Japan, Labour costs | 10 Comments

The myopia of neo-liberalism and the IMF is now evident to all

The IMF published its October – World Economic Outlook – yesterday (October 7, 2014) and the news isn’t good. And remember this is the IMF, which is prone to overestimating growth, especially in times of fiscal austerity. What we are … Read the rest of this entry »

Posted in Economics, Eurozone, IMF, Japan | 10 Comments

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