Abenomics

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abenomics

Why Abenomics Is Failing

So I’ve written quite a fair amount about Japan and Abenomics. Here are the big five: Abenomics 101: Let’s Talk About Japan – where Japan gets plenty of credit, has an asset bubble, and then collapses. Abenomics 102: Japan’s Liquidity Trap – where I get to describe a liquidity trap(ped) economy in terms of food (still proud of […]

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bond market

Abenomics 105: Nationalise The Bond Market?

Some QE alternatives...

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japan crisis

Japan’s Debt Crisis

This clip is a visualisation of what is happening in Japan. The basic summary is this: A country enters a debt trap when its interest repayments on its debt are higher than the money it collects in tax revenues. Currently, Japan spends 23% of its tax revenue on interest repayments. But this takes place at an interest […]

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abenomics

Abenomics 104: Abenomics, finally

So if you haven’t already, here is the background to Japan and why she’s suddenly so important in the world: Abenomics 101: where Japan gets plenty of credit, has an asset bubble, and then collapses. Abenomics 102: where I get to describe a liquidity trap economy in terms of food Abenomics 103: where Japan loses […]

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Japan America Deflation

Abenomics 103: Japan’s Lost Decades

So this is where we stand: Abenomics 101: Japan has a credit bubble, and it bursts because of high interest rates. Abenomics 102: Japan gets stuck in a liquidity trap – at least, if you’re a believer in Paul Krugman. The Lost Decades Even though I mentioned “the Lost Decades” in the last post – […]

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japan 1990s

Abenomics 102: Japan’s Liquidity Trap

To sum up where we were at the end of Abenomics 101, I give you Japan in the early 1990s: the credit-driven asset bubble had burst rather dramatically; the Finance Ministry, having precipitated the crisis with interest rate hikes, is now furiously backtracking; And Japan’s banks and insurance companies are snowed under with bad debts, […]

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japan

Abenomics 101: Let’s Talk About Japan

If you follow the business news, you might have noticed that the economic world has turned into a Hello Kitty crazed tweenager over Japan. Shinzo Abe, the new Prime Minister, has become famous for the portmanteau* of his new policies (Abenomics). And Paul Krugman likes to name-drop Japan’s liquidity trap as a lesson to anyone […]

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Daily News Roundup 2012: Thursday 26 April

Good morning The headlines: America’s Fed left its monetary policies unchanged today. It also indicated that it would do more if needed to help continue the recovery and ensure that inflation continues on target. Those two conflicting targets make for a great tagline. But that’s about it really. An action-redundant phrasing of “when something happens, […]

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Daily News Roundup 2012: Wednesday 18 April

Good morning The headlines: Good news: the IMF has increased its global economic forecasts and Spain sold more debt than expected. And as I see most mornings, this has affected Asian Stock Markets (which makes sense – I do these posts first thing on a South African morning, so I get the Asian news). Spain’s […]

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