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Much Ruin in Japan’s Journey to 2%

  • Brendan Brown
Chapter

Abstract

How much more prosperous would Japan now be if it had been under a sound money regime for the past half-century rather than importing unstable US monetary policies? This chapter pursues a counterfactual narrative to Japan’s actual monetary history, formed around a novel depicting of the facts which illustrates the destructiveness of asset inflation. There are seven sub-periods considered—the miracle years which ended in high inflation, Japan on the edge of monetarist experimentation, the great and camouflaged inflation post-Plaza, the depression and rapid recovery which did not take place, the great yen carry trade and false export boom, the Shirakawa resistance to Bernanke-ite monetary inflation, and finally the Abe 2% inflation megillah which no one believes. Final question: how bad will the day of reckoning be for the Abe monetary inflation?

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Brendan Brown
    • 1
  1. 1.Economic ResearchMUFGLondonUK

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