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© 2024 AFPEasy does it: The Bank of Japan's experiment
By Etienne Balmer and Katie Forster TOKYO©2025 GPlusMedia Inc.
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© 2024 AFP
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dagon
Nothing "maverick" or "radical" about the BOJ policies. They were and have been to ensure no drop in rentier passive income and the general economy entered stagnation and decline.
https://www.spectator.co.uk/article/qe-the-ultimate-subsidy-for-the-rich/
Abenomics and New Capitalism were all just further wealth transfers and shifting of more tax burdens onto workers with stagnant wages away from the rising profits of the investor class.
Yubaru
I wonder what nationality this Momma guy is. Every time I see his name I read mom-ma! I really do think it is supposed to be Monma! Japanese has no words that have double "mm" in them!
sakurasuki
And what Abenomics really achieve so far? Anyone remember those three arrows? Which arrow really got their target, in addition with Tokyo Olympics.
https://www.youtube.com/watch?v=x2lLKCc9uJY
JeffLee
People have short memories. Japan used to have recessions fairly regularly along with deflation, while capital investment and the stock market languished. Every winter and summer, a staple news item was about how Japan’s major employers were once again cutting workers’ bonuses, hence their real wages. The downward spiral has since halted and the economy appears to set for a growth trend. Inflation has been higher, but much less than in other developed countries and without their very high borrowing costs.
fxgai
This.
This.
Japan’s is essentially a central planning regime.
sakurasuki
@JeffLee
Growth, Nikkei is going up however that's not necessary ordinary Taro has their wage going up and living luxury life.
https://japantoday.com/category/have-your-say/the-nikkei-index-closed-at-an-all-time-high-thursday-breaking-the-previous-record-set-in-1989.-what-does-that-mean-for-japan's-economy
almakukac
From the sister article published today:
Just keep rising those interest rates and see what the average Taro thinks about that
JeffLee
@sakurasuki
So blame private-sector employers, which are the ones who, um, set wages. The govt and BOJ are the ones responsible for creating the economic conditions under which corporate profits have hit record highs while interest rates (borrowing costs) have remained the lowest in the world.
HopeSpringsEternal
BOJ pushing on string, the financial system is basically broken, confidence in the future with sky high debt and terrible demographics, hard to come by!
kurisupisu
Funny, how a hike in interest rates here has led to a 2 yen hike against the UK pound.
Thanks BOJ!
As longas there keeps tanking then all those SE Asian tourists will keep on coming!
Moskollo
abenomics was a failure that weakened the yen, increased the national debt and the cost of living, a brutal failure only glossed over because of how he was assassinated..
Cheradenine Zakalwe
There is no "can" about it.
The monetary easing of the BOJ was just a guaranteed subsidy to the income of wealthy investors and a wealth transfer away from Japanese workers.
It is official.
https://www.cepweb.org/wp-content/uploads/2019/09/CEP-WP-2009-2-Saiki-and-Frost.pdf
Chabbawanga
This is still happening. I had a non-commision bonus slashed this quarter and so have other friends. I dont know anyone who has had a wage increase since covid.
kurisupisu
The majority of the working Japanese population WON’T see a pay rise.
Japan has turned into a society of haves and have nots.
The young Japanese graduates that I know are not satisfied with the status quo and some are looking to go overseas where the ‘grass is greener’
JeffLee
I guess that explains why Japan currently has the world's hottest stock market.
JRO
On all foreign news sites and sns posts everyone is talking about Japan having been in a good spot with an average pay rise of 5% which led to the interest rate hike. Japan once again manage to fool foreigners into thinking Japan is all good :P, all english information manage to delete the fact that the 5% pay rise was just a very small % of employees at global companies that have made huge earnings due to the low yen. The real average is probably more to the negative, I haven't talked to anyone that has gotten a raise since Covid, and many getting less or no bonus at all the past year.
JRO
The stock market is not the financial system. With so many Japanese just putting their money under their mattress instead of investing it's quite bad for the average Japanese.
HopeSpringsEternal
If market so hot, why do Apple & Microsoft have approx. same value as all listed companies in Japan? Reality, nobody can buy Govt. or Corp Bonds with inflation, land deflation, etc., thus equity markets overcrowded/bubble.
Jonathan Prin
JRO, you have it totally right.
The number of employees of global companies benefiting the current banking system is low, only a few millions.
Outside civil servants too who are protected, most of the rest of private companies'employees are just suffering about their wages far from following inflation.
And Japanese don't complain, that is why it is unheard by media and people who know nothing about Japan.