Monday, September 22, 2014

Failure of Japanese keynesian experiment

Why are the failures of keynesian-style spending programs in Japan ignored? No idea.

Imf sources:

“Between 1992 and 1995, Japan tried six spending programs totaling 65.5 trillion yen. In April 1998, the government unveiled a fiscal stimulus package worth more than 16.7 trillion yen, almost half of which was for public works. Again, in November 1998, another fiscal stimulus package worth 23.9 trillion yen was announced. A year later (November 1999), yet another fiscal stimulus package of 18 trillion yen was tried. Finally, in October 2000, Japan announced yet another fiscal stimulus package of 11 trillion yen. Overall during the 1990s, Japan tried 10 fiscal stimulus packages totaling more than 100 trillion yen, and each failed to cure the recession. What the spending programs have done, however, is put Japan’s government in poor fiscal shape.”

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