i think experienced policy makers have a tough time listening to koo's advice because it's somewhat myopically focused on fiscal stimulus as the cure all. sure, central bankers love it. but a lot of folks don't follow his belief that a prompt stimulus could have pulled japan out... most believe it was a matter of demographics, the shrinking workforce, which is a big structural issue that bankers can't really fix.
Fiscal stimulus is more about timing. If nothing is done, the economy becomes worst (like our Great Depression). The Fiscal stimulus is really to keep the economy afloat until structural issues are corrected. Otherwise, I can't see any positive outcome.
Koo is wrong to say that the first 20 years of Japan's issues were not demographic just because population was growing! This population growth was occurring in spite of a falling birth rate and shrinking working age population due to increased in longevity
I think you mean a shrinking working age population due to a falling birth rate. Just because people are living longer does not correlate to a shrinking working age population. You can still have an increasing population despite a falling birth rate below replacement rate because of increased longevity.
@@dhjjessel I got your point. Perhaps it was how you said it that cause the confusion. You should have written "This population growth was due to the increase in longevity despite the falling birth rate which resulted in a shrinking working age population." Your original statement states a shrinking working age population due to increased in longevity which is an improper deduction.
@@jameshom6171 thanks - I do prefer your wording! But my point is that Koo dismissed demographics as a driver of Japanification in the 80s/90s citing continued population growth which is misguided in my view
You both were right essentially. Just like in Singapore, you can see many older staffs are working in Changi airport. Which essentially means the growth is backed by active workforce within retirements age. The issue in Japan is more on stagnated uneven wage growth across the board which is slightly differed in China. XiJinPing has tried to combat by re-distributing and narrowing the wages gaps starting from workplaces. His take on China outlook isn't that accurate imo.
I always heard that Balance Sheets can be altered and Cash Flow cannot. Use your best judgment. I live in the US. I know nothing about how other countries trick stock holders! 😢
What you say initially is true, but for an individual, when you know you owe more than you worth, you start to be more careful with your money, that's where balance sheet comes in, your liabilities are greater than your assets. You can be richest man on earth, you can still have cash flow problems because it is a timing problem, cause money is always coming in and going out.
Nuclear waste water is very different from nuclear contaminated water, whereas nuclear waste water does not contact the nuclear reactor directly, but to cool down the shell outside the reactor. But the nuclear contaminated water, or the radio active water, contacted the radio reactor directly, which contains much more radio active elements and in a much higher concentration. Lots of countries release nuclear waste water into the ocean without being criticised internationally is because it is generally less likely to cause harm to organisms in the ocean and has less toxicity. ITS COMPLETELY DIFFERENT from the nuclear contamiated water that Japan is releasing NOW! No matter how diluted the toxins are in the water, the total amount will not change! Water will evaporate and most toxins will stay in the ocean! Not to mention some toxins will react with water and being transported by rain! Eventually it will be in every corner of this planet! Japanese government is so fcking selfish of destroying our living environment!
China's real estate sector can't be save because it's far worse than just unfinished buildings. The buildings were poorly built, and many are structurally compromised. They're literally falling apart, with some collapsing less than 5 years after being built. What is the point of providing additional funding and support to finish these buildings? Chinese residents know this and their entire equity is being wiped out in the process. They can't file for bankruptcy because consumer protection laws are poor in China, so many of them have to carry on paying on their mortgages even if the buildings become inhabitable.
@@Adnancorner There are numerous RU-vid Channels that covers this extensively, just search for "China Tofu Buildings" Here are some of the channels that I'm subscribed to: 1) China Observer 2) China Insights 3) China Fact Chasers 4) The China Show 5) Serpentza 6) Laowhy86 7) ADV China
wow..thank you Richard , i am reading your book: the other half of Macroeconomics, chapter 8 impress me too much..haiya US regulator fixed the 2009 bank crisis by unconvenional way...all the conclusion i learned from pass seem wrong.. never mind, just keep learning, the older the wiser
Clueless academic. The solution of too much debt on inflated assets is not to create more debt and give it to the dummiwho took out the debt. All this will do is create larger balance sheet recessions. Preventing bubbles is the only thing governments can do.
Nobody dies from lack of money. He dies from lack of oxygen and starvation. No economic impact is yhe root cause of one nation's faltering state. Far more critical factors to the social decline and decadance. The US is the prominent example.
