Nobuyuki Hirano, president of Mitsubishi UFJ Financial Group Inc, criticizing the Bank of Japan (BOJ), saying its negative interest-rate policy has contributed to anxiety among households and companies and prolonging it may weaken financial institutions. (Bloomberg)
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Both households and businesses have become skeptical about the effectiveness of policy measures to address the current economic problems.
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sillygirl
It is hard to believe those running the government (and the economy) into the ground graduated from top tier universities. Did the learn nothing?
Moonraker
If it is not incompetence then we must look to who it is benefitting.
Gary Raynor
sillygirl
Top tier in Japan means nothing more than the students have a good memory and increasingly it is meaning that they grew up in middle class families who reside in urban areas and have access to the jukus which are increasingly necessary to get into a top tier university, because the state education system no longer is good enough by itself to get someone into Keio or Todai.
katsu78
Why do you think it's hard to believe?
Economies are complex. Even if they did study advanced economics (no guarantee they did), understanding theoretical models for how economies have worked in the past does not necessarily translate into skill actively managing a modern economy. Add into that the tendency for Japanese leaders to get into power not because of their competence but by who they know in the old boys' network, and it's unsurprising that the economy is a mess. Frankly if anything, I think the surprising thing is that it's not worse.
sighclops
In other words, these "measures" are doing more harm than good. He's right.
JeffLee
Kuroda has a degree from Oxford, Shirakawa from Chicago. In fact, many of the most senior people at the BOJ and MoF have graduate degrees from mostly US universities.
trouble
Which is why they are unable to do anything to positively affect the economy. They studied theoretical economics of models that do not exist today. It's like they studied the medicinal uses of leaches and are trying to find a way to apply it in modern medicine.
The economy of today looks nothing like the economies they studied, so they don'y have half a century of after-market doodling and can't cite papers to support how leaches should be use in this economy.
Contrary to most of you here, I have actually spent time inside the bowls of the BOJ and can say without question that the most important discussions among the staff are whining about how the US FED pays their battery of economists so much more than the gaggle of BOJ economists.
They are like scorekeepers in a game. They aren't players or participants. The BOJ also handles the printing and distribution of cash, unlike the FED, so they have multitudes of managers (MoM) holding pre-meetings before the regular meetings to discuss the moving of money from point A to point B.
In detail.
It's like having an army of Inspector Clouseau's.
John-San
All this schooling is not really benefiting Japan. It only benefits other country looking for highly educated people to fill the gap left by that lack of the own education system. Since living here the big thing that concern me is the lack of sponiaity. I feel that all this schooling or style of education is a leech on creativity. Like I see people waiting for the walk signal late at night or in the morning when the streets are a absent of traffic. Japan Universities are hugh on post stress management which has killed off any risk taking. Like the lack of thinking outside the box. I look at Australia for E.G. the working class and middle classes have a way better social lifestyle . They have 4 weeks off work annually. Can afford to holiday and they work a 38 hour week or 35 if your a Government worker. Plus their minimum wage is $20 per hour or about USD $15 at percent. This allows the working class to participate in the society like weekend sport and recreation. This put more money into the economy that would not be there if you depended on the wealthy class of society to spent their easy earn. Japan needs a long term commitment with putting more money into the local economy like lifting the Minimum wage by 100 % . They can do this by committing to a 15 year plan of lifting the minimum wage by 7% each year. Making Company pay 10 % out of their own pocket into a super scheme for their worker. THis is how Australia working class manage their worker super for the last 40 years and Australia is the 5th biggest economy in the developed world. People will say that Australia is rich in mineral resources and can afford it. But Australia are water and oil poor and have invested heavy in renewable energy. Japan are really good at taking a good idea and making better. Take up some Australian ideas and apply it to Japan instead of applying theoretical economics models.