Not much. Among other things, pushing the yen down further is no longer the policy. And in his list of losers he left out higher prices for consumers, the number one issue in recent elections.
Is the carry trade in US treasuries vital to American interests as some suggest or has Japan's experience validated modern monetary theory to the extent that there are no downside to central bunks funding government spending? Or is that one of the forces behind diminishing labour productivity and de-industrialization.
Brilliant analysis onthe structural problem behind Japan's productivity gap. Your framing of the 92% R&D subsidy concentration among large firms really crystallizes why technology difussion fails. What strikes me is how this mirrors the post-1973 shift from fluidity to rigidity you describe—by protecting incumbents through financing mechanisms, Japan essentially locked in a system that prevents the very adaptation needed for median firms to absorb frontier innovations. The comparison with US R&D shifting to sub-100 employee firms is particulrly revealing.
I'm so glad you liked it. I think you'd enjoy The Contest for Japan's Economic Future. Also, it would help the blog if you'd subscribe or a least "buy me a coffee" on a yearly basis
Richard, what do you think of this argument: https://michaelnicoletos.substack.com/p/japan-isnt-losing-control?triedRedirect=true
Not much. Among other things, pushing the yen down further is no longer the policy. And in his list of losers he left out higher prices for consumers, the number one issue in recent elections.
Is the carry trade in US treasuries vital to American interests as some suggest or has Japan's experience validated modern monetary theory to the extent that there are no downside to central bunks funding government spending? Or is that one of the forces behind diminishing labour productivity and de-industrialization.
Not vital as those prophets of doom claim. I'm no fan of MMT
Brilliant analysis onthe structural problem behind Japan's productivity gap. Your framing of the 92% R&D subsidy concentration among large firms really crystallizes why technology difussion fails. What strikes me is how this mirrors the post-1973 shift from fluidity to rigidity you describe—by protecting incumbents through financing mechanisms, Japan essentially locked in a system that prevents the very adaptation needed for median firms to absorb frontier innovations. The comparison with US R&D shifting to sub-100 employee firms is particulrly revealing.
I'm so glad you liked it. I think you'd enjoy The Contest for Japan's Economic Future. Also, it would help the blog if you'd subscribe or a least "buy me a coffee" on a yearly basis