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This is not true though? Japan had interest rates around zero for decades and likewise inflation which bounced around the zero mark, sometimes over, sometimes u
by Etheryte 2y ago
This is not true though? Japan had interest rates around zero for decades and likewise inflation which bounced around the zero mark, sometimes over, sometimes under. It is both possible and feasible, it's simply a matter of policy. See [0] and [1], choose "max" as the date range to see what I mean.
[0] https://tradingeconomics.com/japan/interest-rate https://tradingeconomics.com/japan/interest-rate
[1] https://tradingeconomics.com/japan/inflation-cpi https://tradingeconomics.com/japan/inflation-cpi
- qwytw 2y agoYes and Japan's economy has been stuck in the 90s for the past 30 years with very little growth. What you're describing wasn't their goal, they have been keeping interest rates at ~0% since the late 90s to avoid deflation and to stimulate the economy (and therefore increase inflation) with limited success.
- throw0101d 2y ago> It is both possible and feasible, it's simply a matter of policy. It is been their policy and their desire to get out of the situation that you describe, and not to be living in it: * https://en.wikipedia.org/wiki/Abenomics https://en.wikipedia.org/wiki/Abenomics They want(ed) to hit higher inflation: > Under Kuroda, the BOJ deployed a huge asset-buying programme in 2013, originally aimed at firing up inflation to a 2% target within roughly two years. > The central bank introduced negative rates and YCC in 2016 as tepid inflation forced it to tweak its stimulus programme to a more sustainable one. * https://www.reuters.com/markets/asia/japan-poised-end-negative-rates-closing-era-radical-policy-2024-03-18/ https://www.reuters.com/markets/asia/japan-poised-end-negati...
- pavlov 2y agoBut few people seem to find Japan’s past decades a desirable example because they had no growth either.