The Holy Grail of Macroeconomics: Lessons from Japan's Great Recession

Cover......Page 1
Title Page......Page 4
Copyright......Page 5
Contents......Page 8
Acknowledgments......Page 10
Preface......Page 12
1. Structural problems and banking-sector
issues cannot explain Japan's long recession......Page 17
2. The bubble's collapse triggered
a balance sheet recession......Page 27
3. Fiscal expenditures bolstered Japan's
economy......Page 38
4. Debt minimization and monetary policy......Page 44
1. Emerging from a balance sheet recession......Page 55
2. Tax receipts during a balance sheet recession......Page 67
3. Interest rates after a balance sheet recession......Page 83
4. Proclaiming the need for monetary easing only demonstrates a lack of understanding of the recession......Page 89
1. Why have economists overlooked balance sheet recessions?......Page 101
2. The Great Depression as a balance sheet recession......Page 111
3. There is more than one kind of recession......Page 136
1. The problem with unorthodox monetary accommodation......Page 141
2. Exchange-rate policy in a balance sheet recession......Page 157
3. We must leave a healthy economy for the next generation......Page 160
1. Bubbles, balance sheet recessions, and the economic cycle......Page 173
2. The mistake of applying yang tools to a yin
world......Page 181
3. What Keynes and the monetarists both missed......Page 187
4. Toward a synthesis of economic theory......Page 190
1. The need for real reforms in Japan and other developed countries......Page 201
2. Global imbalances and liberalization of capital flows......Page 209
3. Correction of global imbalance must also be gradual......Page 228
1. America's situation: the subprime fiasco......Page 237
2. The Chinese bubble......Page 255
3. Germany's choice under Maastricht......Page 263
4. Preparing the global economy for both Yin and Yang phases......Page 266
1. Neoclassical economics has overlooked the reason for money's existence......Page 269
2. Welfare implications of the use of money......Page 278
3. Conclusions......Page 281
References and Bibliography......Page 283
Index......Page 295