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I am pointing out one of the many side effects of this policy. 31 years and they still haven’t figured out a way forward. We are all in the same mess, Japan’s

by dade_ 4y ago

I am pointing out one of the many side effects of this policy. 31 years and they still haven’t figured out a way forward. We are all in the same mess, Japan’s situation is just ahead of us. I think their situation is our future. A stagnant economy of zombie companies, a government & central bank playing endless games to avoid collapse and crisis. They will keep this going as long as possible. I hope they do, it would be an instruction manual for us all, but each decade that passes dims my hope.

JumpCrisscross 4y ago
> We are all in the same mess, Japan’s situation is just ahead of us We are in opposite situations. Japan has been fighting deflation for decades. The U.S. deployed massive stimulus to fight deflation and is now raising rates and cutting the budget deficit to fight the resulting inflation.
- orwin 4y ago
  By the way, i think the ECB reaction is better than the Fed, for the second time in less than 3 years. Maybe the Fed will end up being right this time around but it feels like they are once again acting out of tempo. Maybe being late/inefficient at first with COVID made them react too much now? They might be right still, but the Fed acting as scared as the BoE is a bad look for confidence.