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Bank of Japan lifts view of economic outlook

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hmmmm. the BoJ has such a sterling record of predicting the future and managing the present. let's believe their every word.

3 ( +4 / -1 )

The BoJ has a hard job of predicting the future thanks to the government and the culture.

How to increase spending when there is a culture willing to accept low bank interest rates on deposits that is laughable. The culture is save instead of spend and not to take out loans, even though the rate of interest is again laughable.

How do you increase spending and inflation when the government includes increases to a spending tax, i.e., JCT?

The Japanese government has put Japan into a bind with the huge debt amounts that prevents it from increasing government spending to act as a stimulus. They have used that lever too many times, and now they are in a corner, i.e., the need to increase taxes and the need to stimulate the economy.

2 ( +2 / -0 )

Good economic news apparently draws no reaction from JT punters.

-2 ( +0 / -2 )

ozellis, the BOJ saying this or that isn't that good economic news. The recent upturn all comes down to the yen getting dumped for foreign assets in response to the US election result.

viking68, I'm skeptical that government spending works as a stimulus in the best of times but certainly it's been tried and failed in Japan only to add to the huge debts being racked up.

As you note people are saving despite zero returns for doing so. Nothing better to do with the money, and worried about the future.

The government ought to focus on policies that will boost incentives to take risks in pursuit of bigger returns. Policies that will boost economic growth.

Abe’s promises to cut through red tape—the key third plank of Abenomics—have also been slow in coming.

That's the missing link. Abe needs to go big on reforms, but the bereaucracy stands in the way and his heart doesn't seem to be in it. Seems to me that the new US administration, despite the 4 year handicap, might end up showing the Japanese how pro-growth policy is done next year. (For now, I have such hopes.)

The BOJ hoped consumers would spend more if prices were rising

It's one for the "stupidest thing I ever heard" list. Prices rising isn't what makes people want to spend (except in worse basket cases like Venezuela).

Consumers will spend more if there is real economic growth. Good fiscal and regulatory policy from the government could act to support that, if only there was the will to shake things up. But there isn't.

1 ( +1 / -0 )

BOJ can thank Trump for this lift.

0 ( +0 / -0 )

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