![]() ![]() ![]() The Bank of Japan has failed in its idiotic mission to spur price inflation.It would behoove economic writers bemoaning deflation to stop for a mere second to ponder two facts. Richard Koo, chief economist of the Nomura Research Institute, has estimated the cumulative loss of wealth on shares and real estate between 19 at ¥1,500tn ($12.8tn) - three times America’s loss measured in relation to gross domestic product in the 1930s depression. Since the bursting of Japan’s notorious bubble in the 1990s, the loss of wealth has been huge. This is, after all, a country that has suffered from debilitating deflation since the late 1990s and where wages have lagged behind productivity growth for years. The docility of the Japanese certainly appears counter-intuitive. How come this country, whose economy has been in the doldrums for two decades and where the suicide rate is vastly higher than the global average, is not in the grip of anti-establishment populism? Yet a few rage-free zones remain, of which Japan is the most conspicuous. Anger towards political elites is pervasive. In Japan Resists the Populist Tide, Plender says Japan’s immunity to a virus consuming other developed countries is remarkable.Īfter December’s No vote in the Italian referendum, the rise of Donald Trump and the British vote to leave the EU, it appears that the political landscape of the developed world is being redesigned by the victims of globalisation and technological change.
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