Paul Krugman: The Moral Equivalent of Space Aliens


 

To almost everyone’s surprise, Japan — Japan! — has emerged as the advanced country most willing to break with austerian orthodoxy and try a combination of aggressive monetary and fiscal stimulus. The verdict on Abenomics is, of course, still out, although early indications are good. But how did this happen?

David Pilling , writing in the FT, suggests that it was the double shock of the 2011 tsunami and China’s overtaking of Japan as the number 2 economy by market value. These shocks, he argues, broke through the fatalism and convinced the Japanese elite that something must be done.

Long-time readers know that I once joked that what we needed in America was a fake threat from space aliens, which would jolt us into action on stimulus; if the aliens were later revealed as a hoax, no matter.

Well, it looks as if Japan has found the moral equivalent of space aliens. Good for them.

The Moral Equivalent of Space Aliens – NYTimes.com

This entry was posted in “Saltwater” vs “Freshwater”, Japan, Macroeconomics, Paul Krugman. Bookmark the permalink.

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