A korrentour reading

Judging by output kept near potential despite weak private demand, Japan's decades of high debt and low inflation reflect a qualified policy success, not failure.

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A korrent — “current”, with a K — is our reading of what someone said: one sentence, drawn from their own words below. People put the same thought in different words; a korrent tries to name the thought they share, so that what several people mean can be set side by side, and followed as it changes.

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What Olivier Blanchard actually said

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OB
Olivier Blanchard 1 Jun 2022

Japanese macroeconomic policy is often characterized as a failure, with the central bank unable to achieve its inflation target, a low growth rate, and debt ratios steadily rising to reach more than 170% for net debt and 250% for gross debt. I think it should be seen instead as a qualified success, with the use of aggressive fiscal and monetary policies to compensate for very weak private demand: Output has remained close to potential.

↗Fiscal Policy under Low Interest Ratesdirect.mit.edu

First recorded here 1 Jun 2022 · How quotes work

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