Re: Japan/recent decisions (fwd)

[Timothy Canova <tcanova@xxxxxxxxxxxxx>]

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> To Post Keynesian Network:
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> It seems to me that the argument can be made that $190 billion fiscal stimulus is simply too little, particularly in light of Japan's
> high real interest rates combined with significant deflation (which is more serious than high real interest rates without deflation).
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> The deflation is forcing liquidation of loans and possibly even contraction of the money supply.
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> The level of bad loans on the books of Japanese banks have now risen to over half a trillion dollars.
> A $190 billion fiscal stimulus is merely bailing a trickle of the water which is
> seeping out of the Japanese economic ship of state.
>
> Tim Canova
>
> Timothy A. Canova
> Visiting Instructor
> University of Miami School of Law
>
> tcanova@xxxxxxxxxxxxx
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