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Proponents advise printing money until inflation hits and approve of Abenomics Could a revolution be coming in economic thinking? MMT... Does the Japanese experience validate MMT, as Professor Kelton implied? Perhaps. It certainly raises serious doubts about the "fiscal discipline" strongly advocated by Kenneth Rogoff, Christine Lagarde and many other experts and policymakers since the global financial crisis of 2008. For Japan has been running large fiscal deficits for more than 20 years and has consequently amassed a Mount Fuji-sized pile of outstanding government debt, equivalent to 250% of Japanese GDP, according to Japan's Ministry of Finance. Far from triggering a bond market rebellion and soaring interest rates, as doomsters consistently predicted, Japanese interest rates
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Proponents advise printing money until inflation hits and approve of Abenomics Could a revolution be coming in economic thinking? MMT... Does the Japanese experience validate MMT, as Professor Kelton implied? Perhaps. It certainly raises serious doubts about the "fiscal discipline" strongly advocated by Kenneth Rogoff, Christine Lagarde and many other experts and policymakers since the global financial crisis of 2008. For Japan has been running large fiscal deficits for more than 20 years and has consequently amassed a Mount Fuji-sized pile of outstanding government debt, equivalent to 250% of Japanese GDP, according to Japan's Ministry of Finance. Far from triggering a bond market rebellion and soaring interest rates, as doomsters consistently predicted, Japanese interest rates
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Mike Norman considers the following as important:
This could be interesting, too:
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Proponents advise printing money until inflation hits and approve of Abenomics
Could a revolution be coming in economic thinking? MMT...
Does the Japanese experience validate MMT, as Professor Kelton implied? Perhaps. It certainly raises serious doubts about the "fiscal discipline" strongly advocated by Kenneth Rogoff, Christine Lagarde and many other experts and policymakers since the global financial crisis of 2008.
For Japan has been running large fiscal deficits for more than 20 years and has consequently amassed a Mount Fuji-sized pile of outstanding government debt, equivalent to 250% of Japanese GDP, according to Japan's Ministry of Finance.
Far from triggering a bond market rebellion and soaring interest rates, as doomsters consistently predicted, Japanese interest rates have fallen to vanishing point.
Since the start of Abenomics in 2013, the story gets even more interesting. Thanks to the quantitative easing program of bond purchases introduced by Kuroda, 40% of all outstanding Japanese government bonds now sit on the BOJ balance sheet.
In other words, one arm of government owes a vast sum of money to another arm of government -- which means that no debtor-creditor relationship exists. Despite the strident disclaimers of the Japanese authorities, this is not far removed from the world of MMT.
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