@RobinBHarding @RobinBrooksIIF Hi the 2 Robins forgive me my manners but may i ask if either of you are familiar with any good articles examining the BoJ's brief dalliance with negative policy rates and why they abruptly ditched the policy? It would be a fascinating read.
Personally i think they took way too much flack for the policy and now they seem committed to its opposite. Their ZLB policy looks like one of those long slow suicide notes presumably motivated to restore monetary grace and honour to themselves; tragic and selfish...
Japan has succeeded in lowering expected inflation and duration rates to zero. Well done i hear you say. But what if the notoriously shy and elusive natural rate of interest is below zero? What then? And with tightening fiscal policy -less JGB issuance and a desire to raise taxes
How can anyone feel comfortable with Japan sporting supposedly the highest real rates versus Europe and the US? And it's almost impossible for market forces to challenge what i presume is a grave error Don't they know how the military dealt with errant BoJ chiefs in the 1930s?
