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.
(From The Telegraph)
Premier Shinzo Abe has vowed an all-out assault on deflation, going for broke on multiple fronts with fiscal, monetary, and exchange stimulus.
This is a near copy of the remarkable experiment in the early 1930s under Korekiyo Takahasi, described by Ben Bernanke as the man who “brilliantly rescued” his country from the Great Depression.