Worswick, in the 1930, our depression held for a long time due to the lack of aggregate demand, people lost their savings when banks collapsed (and those in the market lost a bundle or two), and there was no "safety net" providing a minimum level of demand in the economy as we have now. Japan has money stashed away to prime the pump, it just need to be unlocked. S*&^t, if advertising (patriotism) does not work, go through a tax reduction tied to spending (tax credits for spending on let say 100 different classes of durable goods, or any purchase above 150,000 yens, or whatever, they should get creative.
Zeev |
