The only nation going in this direction?

Probably too early to short the yen, but keep an eye on it…

Govt Seeking Y340bn For Extra Budget

TOKYO (Nikkei)–The government is looking to secure 336.9 billion yen in a supplementary budget for fiscal 2010 to implement its new growth strategy, The Nikkei learned Monday.

The draft budget, to be approved at a cabinet meeting Tuesday, aims to ensure a stable supply of rare earths and to fund the eco-point program for housing, among other priorities.

About 319.9 billion yen is expected to be spent on job creation, including 51.1 billion yen for employment and training of new graduates and other young people.

(The Nikkei Oct. 25 evening edition)

2 Responses

  1. A bit off topic: there’s an interesting paper here which claims Japan’s lost decade was due to their funding their stimulus from borrowed money rather than new or “printed” money. I.e. they didn’t follow the MMT prescription: increase private sector net financial assets in a recession. The authors’ METHOD of increasing psnfa is odd: have government borrow from commercial banks. That strikes me as unnecessarily complicated, though it ought to work.

    http://repec.org/mmfc04/9.pdf

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