11-19-2016, 08:10 PM
(11-19-2016, 03:23 AM)Galen Wrote: You have noted the negative effects of this policy on the young who also tend to be poorer and not hold equities. This has made wealth inequality greater than it otherwise would be just as it has in the US. I would also maintain that in addition to the taxes that fall more heavily on the poor, the decrease in purchasing power caused by inflation has fallen on the poor and the young. It seems likely that this is part of the reason why family formation and the lower birthrate has affected Japan more than it has in the US and Europe.
I really don't think you can say Japan continued with inflationary Keynesian policies after the crash. In the 1960s to 1980s, when they were trying to build exports to the U.S., yes, but since the beginning of the 1990s, inflation in Japan has been essentially zero, with the price index the same in 1992 as it is today:
http://www.tradingeconomics.com/japan/co...-index-cpi
(set the graph to "max" time period)