Leading Japan Banking Reform?
Racked by deflation, a ballooning fiscal deficit and more than a decade of economic stagnation, Japan is suffering woes not seen since the Great Depression. The troubles result from a series of policy missteps (including plenty by the central bank), political infighting and sheer resistance to change. They have turned Japan’s once-thriving economy into a financial time bomb.
Having stood by as the nation exhausted most of its arsenal of fiscal and monetary weapons, lawmakers are stepping up calls for the central bank to adopt an inflation target, buy more government bonds and take other steps to revive the sagging economy. These are policies long recommended by some Western economists — one reason the Japanese have resisted them for so long.