Japan is the Model?

Nobel Laurette Joseph Stiglitz claims here that Japan is the model for how economic policy can get the world economy out of its current malaise.

Now, though, Japan is leading the way. The recently elected prime minister, Shinzo Abe, has embarked on a crash course of monetary easing, public works spending and promotion of entrepreneurship and foreign investment to reverse what he has called “a deep loss of confidence.” The new policies look to be a major boon for Japan. And what happens in Japan, which is the world’s third-largest economy and was once seen as America’s fiercest economic rival, will have a big impact in the United States and around the world.

Comments

  1. Why is it that economists who are so wrong never answer for their persistent errors? Krugman has been wrong since his days at MIT traipsing around Asia destroying economies. Stiglitz never has to answer when he is wrong and I believe that more than anything is what has made economics into a late night comic’s joke.

  2. “And what happens in Japan, which is the world’s third-largest economy and was once seen as America’s fiercest economic rival, will have a big impact in the United States and around the world.”

    Well, he got THAT part right… he just has yet to figure out that “what happens” will be very bad, not very good.

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