Japan threatens old mistakes


In April 1997, Japan built its spending tax and ended the promising economic revival in decline. In August 2000, and again in July 2006, Japan Bank raised interest levels, only for its cutting again when the economy ended and it went to decline. Without any impediment, Prime Minister Shinzo Abe raised the tax charge in April 2014. The result: another decline.
There is duplication here. However, Japan is again hitting the same mistake.
Abe opened an office in 2012 which prompted the revitalization of the economy and ending its decline in Japan since its death; He was thrown in 1990. Haruhiko Kuroda, the Japanese Bank's ruler, put two men as an Abenomics program (Abe Economic).
Japan's share of assets purchased equivalent to 100 per cent of Japanese products, which weaken the yen, five years of strong economic growth and unemployment rate; dropped to 2.3 per cent.
Now there are signs that emphasis is on the influence of incentives. Abe has three years at the highest. Before going down, he hopes that Avenium will win and defeat his / her case; wind. The prime minister wants him to continue with an additional increase in falling spending fees, although there are some disappointing inspiration plans.
At the same time, Kuroda says Japan "is now in a position to implement a rigorous policy, to overcome the decision of the most economical way of economic policy." To an unidentified extent outside the country, the Japanese Bank is banned by committing an easy cash policy and it is move away from further incentives.
This situation would be logical if the downturn was already extinguished. But no. The Japanese economy is doing a lot better, but main inflation, which rises 0.4 percent over a year ago, is still well below the 2% Japanese Bank target.
Sometimes the long-term expansion of the world is finishing. If Japan still has a big impact, the resulting effort has no price. But many of them are not promising as a result of today.
The best sign of decline in the Avenium stimulus commitment came when the Japan Bank moved this summer to increase its 10-year ties of approximately 0.1% to 0.2 percent. The Japan Bank said that this was essential for "sustainability promotion" for what would be the ongoing policy. However, this has led to a tightening in financial circumstances at a time when the middle bank is still far from its inflation target.
This decision accompanies a mixed review of commitments. The Japanese Bank still has a certification that it is buying government bonds at an annual rate of 80 billion billion yen, although he has been buying from a & # 39; buy yourself to around 45 trillion yen.
There is a "overflowing function of inflation", which seems very difficult, but it allows rates to increase interest before the inflation yields 2 per cent. There is also a new commitment to maintaining levels of "long-term" (in English version of the statement) or "at the moment" (in Japanese version).
Kuroda says that the meaning of BOJ is closer to the English term. However, the view is that the middle-sized bank that is opposed to each other is more precisely what it is trying to achieve. The bank has been fortunate so far: the levels of US interest helped to control their control. But this fortune can not be the responsibility, especially if it is likely to increase the roof of the building again.
It would be easy to accept such cromps from the Japanese Bank if there was more evidence of bad effects from its jobs to buy large bills, but Bank Financial Reporting Report had not been accelerated to accelerate . It is certainly true that Japanese banks are struggling to make money with a low rate of interest rates. But the reason is that Japan has a large number over the bank end. It is not the intention of a bank that will bring them a profit.
Can not you understand the incidence to stop acceleration? What is the case, for example, of being & # 39; reaching a 2 per cent inflation rate when profits are high and unemployment rates are low? Is not the current situation desirable? But this is like saying that you feel better to stop it. rest of the antibiotics. The incentive programs in the middle of the road have prevented all previous failures and the Japanese public debt can not be controlled unless there is sufficient investment and spending to replace government costs . This is the first aim of his & # 39; Abinomics program.
The right way forward is clear. The Japanese Bank should stop doing time and clearly state that it expects to maintain the incentive program so that inflation exceeds 2 per cent. The Prime Minister should suspend the tax increase until this objective is achieved.
Together, Abby and Coroda, they did good things. They are obliged to continue. This is probably Japan's final chance to escape the disastrous effects of Japan; at the economic downturn and lower prices – it's hard to think about anyone; The political devolution could try again. When Japan is currently surrendering, or a & # 39; Applying a beautiful influence for political diversity, that would be a mistake.

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