Friday, May 10, 2019

Leika Kihara — BOJ chief rejects idea of Japan as 'Modern Monetary Theory' model

Some fans of MMT have cited Japan as a success case, saying Tokyo has been able to boost fiscal spending without causing inflation as the central bank keeps the government's borrowing cost ultra-low through its massive stimulus programme. 
Kuroda said Japan was not resorting to MMT, as the government commits to getting the country's fiscal house in order.
"Japan has deployed economic stimulus policies. But the government believes it's important to restore fiscal health and make fiscal policy sustainable," Kuroda said. "It's wrong to say Japan is resorting to MMT."...
He obviously doesn't understand MMT, only a caricature of it.

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