On Wed, Mar 16, 2011 at 5:25 PM, Jim Devine <[email protected]> wrote: > raghu quoted: >> Japan is a wealthy country which is responding to the disaster, among >> other things, by printing hundreds of billions of dollars’ worth of >> new money. Money is not the bottleneck here: if money is needed, Japan >> can raise it. ... > > Printing Yen threatens to cause inflation, especially when the > aftermath and the aftershocks of earthquake are restricting supply. On > the other hand, if the '"money" is a gift of US$, that wouldn't cause > inflation in Japan (or the US). > > still the article was useful.
>From what I understand, the Japanese economy has been in near-depression for the last 2 decades i.e. there is (or at least was) a substantial slack in resource utilization. I agree that if it makes sense to print yen now, it should have made even more sense to do so before the earthquake, but such are the games that have to be played to maintain our monetary illusions.. -raghu. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
