Nice article but with the central banks following in the foot steps of the BOJ what did the author expect? In any case he's right and central banks need to change policies in order to re-establish the business cycles back to normal. Of course this is difficult in the US with President Trump asking the Fed to lower interest rates and get a new round of QE going.
The low-growth trap Japan is stuck in is spreading across the world
Not too long ago, the conventional wisdom held that “Japanification” could never happen in Western economies. Leading US economists argued that if the combined threat of weak growth, disinflation, and perpetually low interest rates ever materialised, policymakers would have the tools to deal with it. They had no problem lecturing the Japanese about the need for bold measures to pull their country out of a decades-old rut. Japanification was regarded as the avoidable consequence of poor policymaking, not as an inevitability. THE TABLES HAVE TURNED And yet the spectre of Japanification now looms over the West. After the 2008 ... (full story)
- Posted: Apr 16, 2019 12:27am
- Submitted by:Category: Fundamental AnalysisComments: 1 / Views: 758