{"id":19194,"date":"2016-03-26T18:07:49","date_gmt":"2016-03-26T23:07:49","guid":{"rendered":"http:\/\/olduvai.ca\/?p=19194"},"modified":"2016-03-26T18:14:57","modified_gmt":"2016-03-26T23:14:57","slug":"krugman-goes-to-japan-scolds-abe-for-worrying-about-quadrillion-yen-debt-pile-leaves","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=19194","title":{"rendered":"Krugman Goes To Japan, Scolds Abe For Worrying About Quadrillion Yen Debt Pile, Leaves"},"content":{"rendered":"

Krugman Goes To Japan, Scolds Abe For Worrying About Quadrillion Yen Debt Pile, Leaves\u00a0<\/a><\/h3>\n
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Much like BoJ governor Haruhiko Kuroda, Paul Krugman thinks that the key for Japan when it comes to overcoming decades of deflation is a positive outlook.<\/p>\n

\u201cJapan needs to reach a point where everyone believes that it has pulled out of deflation. And then if that can be believed, then it may be able to stay out of trouble thereafter,\u201d he\u00a0told an audience<\/a>\u00a0in Tokyo last September.<\/p>\n

That rather ridiculous pronouncement is reminiscent of something Kuroda said last summer: “I trust that many of you are familiar with the story of Peter Pan, in which it says, ‘the moment you doubt whether you can fly, you cease forever to be able to do it.’ Yes, what we need is a positive attitude and conviction.”<\/p>\n

In other words,\u00a0Krugman and Kuroda believe that Japan can wish its way out of deflation<\/strong>. Krugman\u2019s comments in Tokyo came around 10 months after he visited Japan in 2014. On that trip, he\u2019s said to have helped convince PM Shinzo Abe to delay a planned sales tax hike. \u201cThat nailed Abe\u2019s decision —\u00a0Krugman was Krugman<\/strong>, he was so powerful,\u201d Japanese economist Etsuro Honda said, recounting a meeting between the economist and the premier.<\/p>\n

Well, 16 months has passed since that fateful visit and virtually nothing has changed in Japan. In fact, the Japanese have since taken a further plunge down the Keynesian rabbit hole by taking interest rates negative and not only is inflation still languishing at essentially zero, stocks are some 20% off their highs and this month\u00a0the yen actually hit its highest levels since Kuroda announced the second round of QE two Octobers ago<\/strong>.<\/p>\n

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

Krugman Goes To Japan, Scolds Abe For Worrying About Quadrillion Yen Debt Pile, Leaves\u00a0 Much like BoJ governor Haruhiko Kuroda, Paul Krugman thinks that the key for Japan when it comes to overcoming decades of deflation is a positive outlook. \u201cJapan needs to reach a point where everyone believes that it has pulled out of […]<\/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":[1265,57,195,366,1167,452,472,534,614,13126,1264,2189,13127,9620,1478,4318],"class_list":["post-19194","post","type-post","status-publish","format-standard","hentry","category-economics","tag-abenomics","tag-bank-of-japan","tag-debt","tag-global-economy","tag-greece","tag-japan","tag-krugman","tag-monetary-policy","tag-paul-krugman","tag-pomo","tag-recession","tag-shinzo-abe","tag-stimulus-spending","tag-the-economist","tag-yen","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19194","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=19194"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19194\/revisions"}],"predecessor-version":[{"id":19196,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19194\/revisions\/19196"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}