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Monetary PolicyWorld History
The Japanese experience offers valuable lessons for the US and Europe. A loose monetary policy can stabilize a recession for the short term, but a persistent flood of cheap money paralyzes productivity gains and growth.
In Japan, huge social security expenditures have been simply monetized by the Bank of Japan at the expense of the overall welfare and the economic prospects of Japan’s youth.
Taxes and SpendingWorld History
Whatever happens with the virus, the real story, the real historical change, is probably economic. Abenomics—Japan's ultra-Keynesian experiment—seems to be dead.
Bureaucracy and RegulationMonetary PolicyWorld History
The popular narrative is that demographics are driving Japan's declining worker productivity. But the real culprit is government regulations and a lack of entrepreneurship.
Labor and WagesMonetary PolicyWorld History
Real wages in Japan have been declining thanks to decades of expansionary monetary and fiscal policies. Now "Japanization" increasingly looks like a fate that awaits Europe.
In July, year-over-year growth in the money supply was at 2.19 percent. That was up slightly from June's rate of 1.98 percent, but was well down from July 2018's rate of 4.07 percent.
In June, year-over-year growth in the money supply was at 1.98 percent. That was down slightly from May's rate of 2.10 percent, and was well down from June 2018's rate of 4.30 percent.
Global EconomyBusiness Cycles
Creative design of statistics cannot solve the persistent crisis. The core of the problem lies in a misguided economic policy that zombifies the Japanese economy and thus undermines prosperity.