Japan Today
business

Easy does it: The Bank of Japan's experiment

19 Comments
By Etienne Balmer and Katie Forster

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© 2024 AFP

©2024 GPlusMedia Inc.

19 Comments
Login to comment

"Abenomics" combined generous government spending and central bank monetary easing.

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.

6 ( +15 / -9 )

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!

-6 ( +3 / -9 )

"Abenomics" combined generous government spending and central bank monetary easing.

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

-6 ( +12 / -18 )

And what Abenomics really achieve so far? 

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.

7 ( +14 / -7 )

But Momma said that the policy might also have led to a "lack of fiscal discipline and inefficient allocation of resources through keeping non-viable firms alive".

This.

Monetary easing can also exacerbate social inequality, and "tends to distort financial markets", Kuijs warned.

This.

Japan’s is essentially a central planning regime.

-4 ( +9 / -13 )

@JeffLee

 The downward spiral has since halted and the economy appears to set for a growth trend. 

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

-6 ( +7 / -13 )

From the sister article published today:

Japan's real wages, adjusted for inflation, in January were down 0.6 percent from a year earlier, marking the 22nd straight month of decline, as salary gains continued to fall short of price rises, official data showed.

Just keep rising those interest rates and see what the average Taro thinks about that

0 ( +7 / -7 )

@sakurasuki

that's not necessary ordinary Taro has their wage going up and living luxury life.

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.

3 ( +9 / -6 )

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!

1 ( +5 / -4 )

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!

-4 ( +5 / -9 )

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..

2 ( +7 / -5 )

Monetary easing can also exacerbate social inequality, and "tends to distort financial markets", Kuijs warned.

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

-1 ( +4 / -5 )

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. 

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.

-2 ( +10 / -12 )

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’

-8 ( +4 / -12 )

the financial system is basically broken, confidence in the future ....

I guess that explains why Japan currently has the world's hottest stock market.

2 ( +5 / -3 )

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.

-4 ( +3 / -7 )

I guess that explains why Japan currently has the world's hottest stock market.

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.

1 ( +2 / -1 )

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.

1 ( +2 / -1 )

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.

-3 ( +2 / -5 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites