economy takeoff
  • For the first time in 20 years I am finally optimistic about economic recovery in Japan.

    The key is the massive devaluation of the yen. As I wrote in a recent Japan Times article, the pundits still do not realise the full stimulatory effects of devaluations. They think the gains to exporters are cancelled out by losses to importers. They do not realise that a vast range of domestic industries which have been competing with imported goods and services suddenly find themselves behind a large protective wall (around 20 percent in Japan's case).

    Not only do they gain a massive profit boost. They will want quickly expand production and to start using idled productive capacity. And this is happening across a large swathe of the economy.

    Already the signs of improvement are becoming obvious.

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!