Summary: Abenomics has been very successful in goosing the Japanese economy thus far. However, the question remains whether this success will be short-lived or durable. I believe it is likely to be short-lived because of the policy constraints that all countries face irrespective of whether they have fiat currency.
In the past year or so, I have decided to be more explicit about what I believe what are largely political constraints. And I think this is important in Japan. Having worked both in a policy position and in finance and banking, I am well aware of the political constraints that impinge on what academic economists sometimes think of as purely economic debates. For example, you might hear a lot of econ people saying something about fiat currency and deficits as...
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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.