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It's a cute theory, but Japan had serious inflation after the war, averaging 5%/year for decades and peaking at 25% during the 1970s oil crisis. The current ze
by dustintrex 5y ago
It's a cute theory, but Japan had serious inflation after the war, averaging 5%/year for decades and peaking at 25% during the 1970s oil crisis. The current zero to negative inflation era only began after the Bubble burst in the 1990s.
- CyanBird 5y agoYeah, but that has got to do with how the macroeconomic system works after the bubble and how the central bank was changed from working under the ministry of finance and into being an independent body The book prices of Yen goes into great detail of the Japanese change from being a behemoth of industrial production pre-bubble and into its own current system today
- secondaryacct 5y agoYeah but it's somewhat right what op said: because of that crisis, all they are willing to do now is save. Save save save. They'll spend nothing at all, too hungover of the bubble burst. You can double the supply, they ll double their stash so you ll have very low circulation. And they wont borrow, too afraid of defaulting, so banks dont know what to do with all this stash. So in effect they burn the money supply, and any attempt at changing this must first tap deep into this fundamental fear.