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How Do You Say “Keynesian Failure” in Japanese?

March 10th, 2014 - 12:36 pm

Remember how Japanese PM Shinzō Abe was going to be the guy to really, truly, and finally spend his country into prosperity? Well:

Japan just printed its worst current account deficit on record and its worst GDP growth since Abenomics was unveiled – both missing by the proverbial garden mile and both confirming that all is not well in Asia. As for the perpetual hope of a J-curve (or miracle hockey-stick reversal)? There won’t be one!

Tyler Durden has the whole story, accompanied by some Doom & Gloom-worthy charts.

Deregulate. Simplify the tax code. Protect the value of your currency. Those three steps are all it takes to achieve prosperity, but as Glenn Reynolds like to say, politicians don’t like them because they provide too few opportunities for graft.

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Top Rated Comments   
I’m no fan of Keynesian monetary policies, but there is a huge elephant in the room here that Tyler didn’t mention. And it’s even an even more foolish policy, IMO.

Japan essentially shut down its nuke electric plants. And since they are resource poor, they’ve had to import vast amounts of fossil fuels to keep the lights on and the factories running.

That’s an economic 1-2-3 punch. It ships yen out of Japan and into the energy producing countries, and drives up costs and prices for consumers inside Japan. And it makes all those super value-added thingies that Japan makes and exports more expensive, making them less appealing abroad.
32 weeks ago
32 weeks ago Link To Comment
All Comments   (11)
All Comments   (11)
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I've heard of a country mile, never a garden mile...
31 weeks ago
31 weeks ago Link To Comment
How Do You Say “Keynesian Failure” in Japanese?

I believe "WTF" would suffice.
31 weeks ago
31 weeks ago Link To Comment
There ARE signs of hope: Your Party (みんなの党)

http://en.wikipedia.org/wiki/Your_Party

They're still small, but...
31 weeks ago
31 weeks ago Link To Comment
I wonder if Paul Krugman will say, "They didn't go big enough!" heh heh
31 weeks ago
31 weeks ago Link To Comment
I'll be amazed if he doesn't.
31 weeks ago
31 weeks ago Link To Comment
Keinizuiyanu feiyururu.

I think.
32 weeks ago
32 weeks ago Link To Comment
Protecting the value of your currency may help with making the nation as a whole prosperous, but inflating your currency is a better plan if your goal is to make people closely connected to the government prosperous, because the politically connected generally get first crack at the newly-created money.

So, if you're a politician or someone with influential political connections, which policy do you think is going to look better? You don't need to posit graft or corruption, just a straightforward assessment of where the interests of those in power lie -- along with the postulate that the rulers don't give a damn about the prosperity of the population they rule over.
32 weeks ago
32 weeks ago Link To Comment
I’m no fan of Keynesian monetary policies, but there is a huge elephant in the room here that Tyler didn’t mention. And it’s even an even more foolish policy, IMO.

Japan essentially shut down its nuke electric plants. And since they are resource poor, they’ve had to import vast amounts of fossil fuels to keep the lights on and the factories running.

That’s an economic 1-2-3 punch. It ships yen out of Japan and into the energy producing countries, and drives up costs and prices for consumers inside Japan. And it makes all those super value-added thingies that Japan makes and exports more expensive, making them less appealing abroad.
32 weeks ago
32 weeks ago Link To Comment
This is the elephant in the room. "Setsuden" (energy conservation) can only get you so far in a modern economy. This problem was compounded by Abe's move of intentionally devaluing the Yen, a move that was right to increase exports but also raised the cost of imported energy resources.

Another factor that is below the surface here is not so much the facts as how they are reported. Note the almost triumphant cry of "Abenomics doesn't work." Just like in Reagan's day, the political opponents of Abe (especially opponents of his desire to elevate Japan's geopolitical position and change long-standing interpretations of Article 9) actively look for ways to take him down a notch or two. Not to say that Abe and Reagan are alike, just that their opponents use(d) the same tactics against them.
31 weeks ago
31 weeks ago Link To Comment
With all the yen they were printing I don't see a problem with shipping it out of the country. :)
31 weeks ago
31 weeks ago Link To Comment
I believe it's pronounced "seppuku."
32 weeks ago
32 weeks ago Link To Comment
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