Japan vs. Newton (and Certain to Lose)

Running head first into hard limits
Monday, April 8, 2013, 8:17 PM

Conventional thinking and reporting has it that Japan is conducting a larger version of the same monetary experiment they’ve been running for about 15 years.  The implication here is that we can safely analyze what Japan is up to through the same monetary lens as always, but with a slightly wider aperture.

By now, we are all familiar with the details.  Japan has initiated a program of monetary expansion that goes by the shorthand of 2-2-2.  In 2 years, the Bank of Japan (BoJ) will fully double the monetary base as they seek a minimum of 2% inflation. » Read more