3 ms·
The Japanese central bank doomed their economy to 20+ years of stagnation. Instead of allowing prices of assets to crash after the big bubble they locked intere
by nothercastle 2y ago
The Japanese central bank doomed their economy to 20+ years of stagnation. Instead of allowing prices of assets to crash after the big bubble they locked interest rates at 0 and prevented a recession and repricing of assets but at the cost of future
- mcguire 2y agoJapan had more structural problems than that. For one thing, at the time it was reported that wealthy, powerful people could not be allowed to lose money in the stock market; the broker would make them whole, until the day that they couldn't anymore.
- akira2501 2y ago> they locked interest rates at 0 "How to destroy innovation and ensure monopolies take over your economy."
- amai 2y agoWasn’t that the case for a long time in the US an the EU, too? https://en.wikipedia.org/wiki/Zero_interest-rate_policy https://en.wikipedia.org/wiki/Zero_interest-rate_policy