tag:blogger.com,1999:blog-8663335761640701383.post8199003814482703695..comments2023-05-26T04:17:44.780-07:00Comments on The Deep View: Japan and the Velocity of MoneyUnknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8663335761640701383.post-70723846574859425872010-09-11T22:34:02.455-07:002010-09-11T22:34:02.455-07:00@Justin
I know that you are influenced by the Aus...@Justin<br /><br />I know that you are influenced by the Austrian school and hence would be against interventionist policies like the proposed increase in sales tax. However, I'm not so sure whether one should dismiss the proposed increase outright. If consumers knew that the sales tax was soon going to increase (and hence prices too), they may actually start buying due to their expectation of higher prices in the future. Who knows? At least they're trying something.Deep Vazehttps://www.blogger.com/profile/10063816966784526653noreply@blogger.comtag:blogger.com,1999:blog-8663335761640701383.post-6295319909948709572010-09-11T22:25:59.356-07:002010-09-11T22:25:59.356-07:00@Ahmad
I don't think that policy makers are i...@Ahmad<br /><br />I don't think that policy makers are intentionally continuing with deflation as its clearly not popular - the last five Japanese prime ministers have lasted less than a year in office.<br />I think that they have been trying their best to stop deflation (eg. through quantitative easing and rock-bottom interest rates) but they simply can't get the people to spend money as the Japanese are deferring purchases in the hope of lower prices in the future.Deep Vazehttps://www.blogger.com/profile/10063816966784526653noreply@blogger.comtag:blogger.com,1999:blog-8663335761640701383.post-50728697399386003742010-09-09T03:59:56.773-07:002010-09-09T03:59:56.773-07:00Great post. I am leaning towards thinking that wit...Great post. I am leaning towards thinking that with a resource scarce economy, aging population, and high savings rate that tepid deflation is actually healthy. The rate of deflation seems like it would be inline with the efficiency increase brought about by innovation.<br /><br /> I think that Japan should enjoy its cheap imports and increase its domestic consumption.<br /><br /> I think we would definately both agree that the currently proposed idea to increase the sales tax from 5% to 10+% is a very bad idea.Justinhttp://www.merrillecon.com/noreply@blogger.comtag:blogger.com,1999:blog-8663335761640701383.post-58189926105230442972010-09-08T20:10:35.630-07:002010-09-08T20:10:35.630-07:00Enjoyed it. So, what is motivating the politicians...Enjoyed it. So, what is motivating the politicians to continue with deflation - aging population as a voting constituency? Or, the politicians and policy makers are plain stupid as Andy Xie, ex-Morgan Stanley put it in an article several months ago?<br />Look forward to more posts. <br />AhmadAnonymousnoreply@blogger.com