The Japanese domestic market is stagnant. But many of the large firms used their
earnings to buy up asset around the world. The firms themselves might be able to
ride out the downswing on foreign earnings.
Rod Hay
Michael Perelman wrote:
> I would not say that it would be the only way -- just the conventional way.
> What strikes me is that Japan has almost been able to tread water for a
> decade and possible could be able to ride to recovery on the next world
> upswell. One interesting factor is that the capital stock of Japan is aging
> and they might possibly -- I just don't know -- be able to ride this out and
> liquidate via long term depreciation.
>
> Again, I am not sure. Maybe we can get Bill Tabb on board.
>
> Edwin Dickens wrote:
>
> >
> > Doesn't that create a problem for your--and Michael's--argument that the
> > only way out of a crisis (e.g., in Japan right now) is to liquidate real
> > estate, liquidate labor, etc., as Andrew Mellon used to say?
> >
> > Edwin (Tom) Dickens
>
> --
>
> Michael Perelman
> Economics Department
> California State University
> [EMAIL PROTECTED]
> Chico, CA 95929
> 530-898-5321
> fax 530-898-5901
--
Rod Hay
[EMAIL PROTECTED]
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