On Japan, their new finance minister, and the mistakes we hope the UK won’t copy (from FT leader):

the Japanese conundrum was caused by timid conservatism. Right now, a risk averse stance is to be bold. One must hope that Mr Kan, a deficit dove and deflation hawk, follows his instincts – and does so bravely.

Of course, any such analogies with Japan actually rely on the idea that our economy is like Japan’s.  But incipient signs of real inflation (i.e. not just base effect) might give the lie to this comparison.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s