The weekly post on Monday was on the new Japanese LDP Prime Minister Abe's threat to strip the Bank of Japan of its independence as a central bank. The thrust of his threat goes to the integration of monetary and fiscal policy to create a consolidated government balance sheet so that government can better serve its policy aims.
Tim Duy has a good post on this issue that I highly recommend. And the big idea that Tim has here is that it is fiscal policy that is king here. As I have been saying for some time now, tight fiscal and loose monetary leads to recession. Fiscal will always win in a debt deflationary or deleveraging environment. The problem for policy makers is that fiscal and monetary policy are not necessarily completely aligned. And so those who are looking to push the envelop o...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.