There Is Only One Thing That Can Save Japan Now: Inflation
Japan’s opposition party wants the central bank to whip deflation now with unlimited easing
by Matthew O’Brien
The Atlantic
The paralysis is over, maybe. Five years since the rest of the global economy started turning Japanese, and 20 years since they did, Japan wants to turn back the clock to a time when they had nonzero growth. In other words, they want the Bank of Japan (BOJ) to do something.
That something is printing money, and printing more of it. Ahead of next month’s elections, Shinzo Abe, the once and perhaps future prime minister of the opposition Liberal Democratic Party (LDP), has called on Japan’s central bank to do unlimited easing and to increase its inflation target from 1 percent to 2-3 percent. If Gerald Ford were in charge of PR, he might have said it’s a plan to whip deflation now.
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