As Japan battles coronavirus, cash and bank deposits rise at record pace

Thereby increasing the overall debt pile which will act as a drag on economic activity, slowing or stalling any recovery.

Very prudent. Liquidity is king.

In uncertain times, saving physical cash is by far the best security. No wonder Japanese yen is probably the best "safe haven" currency in the world.

Every economist including Japanese ones: Printing money is good because it stimulates consumption; thus, it also boost the economic growth. More money means people will spend more, and companies make more profits.

Japanese people = I will just do the opposite. I am poor, so I can't afford to spend.

Bank of Japan = Oh no, you are not supposed to do that!

LDP cronies = God damn it! Not again!! NOT AGAIN!!

Where are these cash coming from ???.

Xeno Man, printing money doesn't work to stimulate the economy, the vast sums printed over the last 10 years have singularly failed to produce at best an anemic recovery. Most of the cash has found it's way in to assets, boosting the wealth of the wealthy and having unintended consequences like pricing workers out of the cities they need to work in. The end result will inevitably be inflation, which is great for politicians, bankers and the asset rich but devastating for people, their hopes for a retirement pension and anyone on a fixed income, so that means the majority of the population.

Smart move. Don't spend money just because you have it. Many Japanese remember hard times and act accordingly.

I wish I had better understanding of the Japanese concept of "monttainai" earlier and could exercise it in a broader way. It is really a beautiful thing to apply to life.

 printing money doesn't work to stimulate the economy, the vast sums printed over the last 10 years have singularly failed to produce at best an anemic recovery. 

That was the voodoo theory of the MMT people. The Westerners, who subscribed to MMT, have disturbing fetishes towards Japan. Especially, it was more towards Japanese National Socialism. Both alt-right and soft left-wingers always use Japan as a holy grail of the US' issues. Most of us here know what Japan truly is. It isn't rosy or flowery as people make to be.

Japan may have an Universal Healthcare system but its inaction towards Covid-19 as well as poor quality of medical treatments is very present. Japan may have the best high speed rails (after China) but no one knows the bureaucratic costs for maintenance - China has a superior high speed rail system, yet its debt is more than 1 trillion dollars that can never be paid back, we never know the true numbers with Japan. Those are just few examples that Western media loves to use to persuade Americans accepting the Japan model.

The end result will inevitably be inflation, which is great for politicians, bankers and the asset rich but devastating for people

This is the exact reason why Japanese people do not travel frequently outside the country. People often blame for nationalism/Nihonjiron or crushing jobs hours. I don't see much weight behind those arguments. Japan during 1980s had the same crushing hours, but their tourists literally swarmed all places around the world. They were the biggest spenders in the 20th century until the bubble collapse. China also has nationalism, Han chauvinism is even greater than Nihonjiron, and their people swarmed across the world. Chinese people established Chinatowns everywhere, and adapted to local customs for the goal of expanding Han chauvinism. Japan used to have the most students in the US and Europe; however, the numbers collapsed after 2005 on the eve of 2008 Great Recession. Now, you do not see much Japanese on anywhere of the world, while you can see a Chinese everywhere with some Vietnamese nearby.

The deflationary spiral has killed the buying power and wealth power of Japanese people. Even the elites are affected. Japanese citizens see their wages depressed every year, while their currency is at unfavorable exchange rate against the USD. Less dollars can be accumulated for personal travels and tourism. Less money to spend foreign goods like those Chinese shoppers do. However, Japan's biggest issue is not the deflation. It is hyperinflation, a reason why the BoJ created the self-induced deflationary coma to preserve Japanese economy.

 their hopes for a retirement pension and anyone on a fixed income, so that means the majority of the population.

The wages and pension pays will get depressed on every single year. If they intend to stay on Japan forever, they may benefit. Meanwhile, most of the Japanese elites will flee the country by that time. Even wealthy Yakuzas have already established a comfortable life in Southeast Asia.

@englisc

..."debt pile which will act as a drag on economic activity,"...

Please explain how a large fiscal debt in a country with a sovereign currency with a well organized economy puts a "a drag on economic activity."

(Economists Rogoff and Rheinhart argued that a few years ago, but it turned out their model used fake data.)