The global race to the bottom continues. The BOJ has lowered already low policy rates and set up a program to conduct their own version of quantitative easing. This in hopes of devaluing the Yen and fighting a Japan deflation through monetary policy.
The only consolation here is that at least the US doesn't have the monopoly on ineffective policy.
Story here at Yahoo!.
3 comments:
This was purportedly done to weaken the yen, yet the yen barely budged in another glaring sign that monetary policy will have ZERO IMPACT on defeating deflation!!! Don't you think one of these numbskulls would realize this by now???
Mike,
I builder/realtor I know was pitching a deal back in June for a residential project at $100/psf. Last week I saw him and he is now down to $85/psf, for the same deal, apples to apples. He said the subs were caving on their bid prices.
And materials are way down, I was at Home Depot in June and I always check the lumber prices, a 4' x 8' half inch plywood was $22. When I was in last week it was down to $15. In 2004ish timeframe I remember it was as high as $55. Housing may be starting another step down in prices.
Nat Gas is back in the 3's....the only thing left is petroleum...if somehow that starts to fall watchout for serious deflation imo...
Resp,
I knew already that nobody of the MMT economist had consulted the Japanese government on their economic policy but was secretly hoping that the Japanese were probably reading billy blog. I am disappointed - my hopes vanished now.
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