Personality, Progress And Promise In Japanese Leadership — Wisdom Tree

At least to this observer, Europe and the U.S. bring to mind the fumbling and growing desperation that Japan went through during the long period of political instability before strongman Abe arrived. To turn modern monetary theory into practice, you need functioning and decisive fiscal coordination and plans that go beyond the expediencies of annual budget cycles or election cycle pork-barreling. No fiscal policy vision, no fiscal dominance... make no mistake! Abe-Aso-Kuroda do know what they want to spend on.

In clearer terms, watch for a boost in fiscal spending if or when global or local economic momentum loses steam. The Bank of Japan will finance the added borrowing requirement if excess savings fail to absorb it.

More evidence that monetary policy is waning and fiscal is waxing. It's likely that this will involve a gradual switch, however, rather than a sudden one, absent a pressing crisis that forces a faster pace of change.

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Personality, Progress And Promise In Japanese Leadership

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