One problem plaguing Japan, South Korea, and Western Europe, to varying degrees since 1945, is subservience to the United States. Alliances with the United States extract a heavy toll.
The Bank of Japan's crazy idea of keeping interest rates near zero for decades just shows central banks can sometimes run off the rails. Why would anyone in government allow the central bank to own 50% of the bond market? They also owned significant amounts of the stock market as well. The low interest rates did nothing to stimulate the economy as Japanese companies are famously adverse to loading up on debt. It's a shame the Japanese Government never thought that way about debt.
Great reporting, Lena. You continue to pack so much in 10-15 minutes. Clearly, you do your homework.
Excellent analysis, Lena.
One problem plaguing Japan, South Korea, and Western Europe, to varying degrees since 1945, is subservience to the United States. Alliances with the United States extract a heavy toll.
The Bank of Japan's crazy idea of keeping interest rates near zero for decades just shows central banks can sometimes run off the rails. Why would anyone in government allow the central bank to own 50% of the bond market? They also owned significant amounts of the stock market as well. The low interest rates did nothing to stimulate the economy as Japanese companies are famously adverse to loading up on debt. It's a shame the Japanese Government never thought that way about debt.
Great reporting, Lena. You continue to pack so much in 10-15 minutes. Clearly, you do your homework.