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Japan had the same monetary policy for the same period of time and saw zero inflation. It's not monetary policy. There's no reason to think that 15 years later
by arcticbull 4y ago
Japan had the same monetary policy for the same period of time and saw zero inflation.
It's not monetary policy. There's no reason to think that 15 years later some magical thing happened to flush all the pressure that had built up out of the pipes.
It was due to a combination of fiscal stimulus, yes, to a degree - and also supply chain issues, a land war in Europe, shutdowns in China, and myriad other confounding factors. There's been a lot of perfect storms lately.
- qeternity 4y agoJapan now has actual inflation and is going to be completely powerless to stop it.
- arcticbull 4y agoThat's a great theory. Let's see how it plays out. Looks like it's down to 3.2% from 4.3% at the start of the year. [1] [1] https://tradingeconomics.com/japan/inflation-cpi https://tradingeconomics.com/japan/inflation-cpi
- makomk 4y agoHaving any inflation at all is remarkable for Japan - they've basically had deflation since the early 90s. The measures they've been using to keep inflation that low also look unsustainable (their foreign currency reserves are going to be eaten away).