The BOJ is reaping the whirlwind of what it sowed a dozen years ago, when it embarked on its aggressive deflationary policy.
Japan suffered the double whammy of deflationary policy in concert with a governmental aversion to failure that sets its economic growth back immeasurably.
Even sound Germany has a slightly deflationary monetary policy because it lacks a reliable compass.
Finally, the Federal Reserve should cease its deflationary monetary policy, which has sent real short-term interest rates to very high levels and has helped batter commodity prices.
Finally, the Federal Re-serve should cease its deflationary monetary policy, which has sent real short-term interest rates to very high levels and has helped batter commodity prices.
It was collapsed by deflationary monetary policy.
FORBES: Watching With Horror As The U.S. Plumbs The Depths Of Austerity
The world is now saddled with deflationary fiscal and monetary policy everywhere I look, including the U.S. This is irresponsible.
The Fed had been easing its monetary policy to counteract the deflationary effects of the subprime crisis.
As Adam Posen, a member of the MPC, said this week, the policy has contributed to preventing a deflationary spiral and encouraged an improvement in credit conditions and asset markets over the past six months.
He added that inflation was running below the Fed's long-term target of 2% and said current monetary policy was helping to counter "incipient deflationary pressures".
Even as the government tries to prop up corporate Japan, the central bank's policy has the opposite effect, increasing deflationary pressures and keeping the yen high.
As we discussed HERE , whether this next bust will be a deflationary or inflationary one is yet to be determined, ultimately by the monetary policy of the Federal Reserve.
Financial-sector reform was essential, but the G-20 went too far: In seeking perfection, policy makers have delivered a profoundly pro-cyclical shock, resulting in a deflationary credit squeeze.
The Japanese political class has averted a full-fledged deflationary cleansing of their economy by engaging in endless rounds of Keynesian fiscal stimulus and loose monetary policy.
FORBES: ZIRP, Zombies And The Japanization Of The American Economy
Keep in mind that, as it stands, Cyprus is suffering deflationary effects, bank closure costs, capital controls, yet without getting the redenomination benefits and independent monetary policy benefits of leaving the euro.
FORBES: Links 17 March: Cyprus Bailout And Predictions Of Disaster
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