In fact it is beneficial. No deflation, no economic recovery,
Corporate profits dried up because money was spent on bridges to no where instead of R&D and innovation. Japan needs deflation and a free market. It has neither yet.
When a cup of coffee in Shibuya is 50 cents we'll be on our way to recovery. We can hope.
Feel free to forward this by email to three of your friends.
Those who think deflation is harmless should listen to the Bank of Japan's Haruhiko Kuroda, who has lived through 15 years of falling prices. Corporate profits dried up. Investment in technology atrophied. Innovation fizzled out. "It created a very negative mindset in Japan," he said.Evans-Pritchard is leaving out one salient fact: Japan spent money on bridges to no-where in a Keynesian sailor's shore leave. If they had spent some of that beefing up Fukushima (or decommissioning it) it might have been well spent.
Corporate profits dried up because money was spent on bridges to no where instead of R&D and innovation. Japan needs deflation and a free market. It has neither yet.
When a cup of coffee in Shibuya is 50 cents we'll be on our way to recovery. We can hope.
Feel free to forward this by email to three of your friends.
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