Japan's long rate and the liquidity trap

["Gregoire de Nowell (ci-devant)" <GN842@xxxxxxxxxxxxxxxxx>]

Davidson sees the Hansen "liqudity trap" model of
Keynes as misguided.  Japan's long rate is currently
at about 3% which ought to be very close to liquidity
trap levels where the possibility of a rate increase
ought to scare the bejeezus out of investors.  Do we
have evidence of such an effect?  Should we construe
borrowing long in Japan to play U.S. equity markets
as a failed opportunity to make the Japnaese economy
even more productive?

Greg Nowell