{"id":17128,"date":"2016-01-30T18:40:30","date_gmt":"2016-01-30T23:40:30","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17128"},"modified":"2016-01-30T18:40:30","modified_gmt":"2016-01-30T23:40:30","slug":"the-bank-of-japan-ringing-in-the-endgame","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17128","title":{"rendered":"The Bank of Japan \u2013 Ringing in the Endgame?"},"content":{"rendered":"
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The Bank of Japan \u2013 Ringing in the Endgame?\u00a0<\/a><\/h3>\n<\/div>\n
Let\u2019s Do More of What Doesn\u2019t Work<\/strong><\/div>\n
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It is the Keynesian mantra: the fact that the policies recommended by Keynesians and monetarists, i.e., deficit spending and money printing, routinely fail to bring about the desired results is not seen as proof that they simply don\u2019t work. It is regarded as evidence that there hasn\u2019t been\u00a0enough\u00a0<\/em>spending and printing yet.<\/p>\n

\"Bank<\/a>BoJ governor Haruhiko \u201cFly\u201d Kuroda: is that a windshield I\u2019m seeing?<\/p>\n

Photo credit: Yuya Shino \/ Reuters<\/p>\n

At the Bank of Japan this mantra has been gospel for as long as we can remember. Japan has always exhibited an especially strong penchant for central planning. We still recall that many Western observers were beginning to wonder in the late 1980s whether the Japanese form of state capitalism administered by the powerful Ministry of Trade and Industry and the BoJ wasn\u2019t a superior economic system after all. Then this happened:<\/p>\n

\"1-Nikkei\"<\/a>The Nikkei Index from 1989 to 2003. Japan\u2019s seemingly never-ending boom coupled with forever rising stock prices, carefully administered by Tokyo\u2019s powerful bureaucrats, suddenly became an intractable bust \u2013 click to enlarge.<\/p>\n

This sudden change in fortunes should perhaps have been taken as a hint that central planning of the economy wasn\u2019t such a good idea after all. That was not the conclusion of Japan\u2019s movers and shakers though (or anyone else\u2019s, for that matter). Instead it was decided that what was required were better planners, or at least a better plan.<\/p>\n

For decades Japanese policymakers have been inundated with well-meaning advice by prominent Western economists. Even Ben Bernanke famously admonished them to\u00a0just print more<\/em>. According to Bernanke, holding interest rates at zero and implementing several iterations of QE were indicative of \u201cpolicy paralysis\u201d \u2013 after all, these efforts were obviously just not big and bold enough!<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Bank of Japan \u2013 Ringing in the Endgame?\u00a0 Let\u2019s Do More of What Doesn\u2019t Work It is the Keynesian mantra: the fact that the policies recommended by Keynesians and monetarists, i.e., deficit spending and money printing, routinely fail to bring about the desired results is not seen as proof that they simply don\u2019t work. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[12071,57,68,452,467,534,558,12072,1389,6170,661,662],"class_list":["post-17128","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-game","tag-bank-of-japan","tag-ben-bernanke","tag-japan","tag-keynesian-economics","tag-monetary-policy","tag-negative-interest-rates","tag-nikkei-index","tag-nirp","tag-pater-tenebrarum","tag-qe","tag-quantitative-easing"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17128","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17128"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17128\/revisions"}],"predecessor-version":[{"id":17129,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17128\/revisions\/17129"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}