Populism thrives under deflationary conditions, as in Japan and Germany in 1928-33, but populism in power often brings high inflation
Kuroda signing off on a tightening would be like a sumo champion going on a vegan diet.
Prime ministers came and went like karaoke singers taking turns at the microphone.
Once upon a time it was possible to view all this as some bizarre, uniquely Japanese phenomenon. No longer.
The ideological project of turning Greeks into Germans and vice versa has collided head-on with “the crooked timber of humanity.”
Abe himself is considered a “nationalist”, which is simply a way of saying a patriot that you don’t like
Rather like a Zen master shattering the preconceptions of his acolytes, he shocked the markets by doing precisely nothing…
The yen has acted as a financial version of the “wind of the gods” – the fortuitous typhoon that destroyed the fleet of Kublai Khan
Back in 2002 Ben Bernanke recommended the deployment of “helicopter money” – meaning a broad-based tax cut financed by the central bank – as the best cure for deflation.
Remarkably even Zimbabwe, once the poster-child for hyperinflation, is now in deflation