Print for inflation Abe said. No problem Abe said.
Printing money and broad fiscal stimulus isn’t going to work because of deep structural issues within the Japanese economy. Specifically the country’s population keeps getting older while the economy is also becoming more and more integrated with China’s. Deflationary winds are gale force and steady.
Japan’s new Prime Minister Shinzo Abe is not messing around. He’s not priming the pump, he wants a gusher caused by massive inflationary pressure. This has always worked well in the past of course. Sure am glad China and Japan keep sparing over those rocks in the South China Sea. Thankfully nobody ever goes to war for economic reasons.
Are the Japanese as irrational as they seem?