Zeev, I understand your point that increasing aggregate demand also increases imports. I remain unconvinced, however, that fiscal policy by the Japanese government at this stage of the game can achieve it, for the reasons that Stephen Yeo has just listed and for other reasons that we have been discussing here for the last year, (one of which is that the Nikkei is ready to breach 13,000 <ggg>). My point was that the advertisement campaign you propose would work well to move the Japanese to shift their purchases to domestic products when they are faced with the adversity. In any case, the Japanese government unfortunately is not reading this thread, so we are free to give them whatever advice we can.
Regards, Seppo
EDIT> It just went below 13,000 |
