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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (209)	12/28/1997 5:59:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 9980

Sankar, would not a major tax reduction or elimination of the recently imposed sales tax do much more for stimulating consumption in Japan than lowering the interest rates? I was under the possible wrong impression that credit is not a consumer problem in Japan (and thus the low interest rate environment not a major incentive) but that lending to corporations has dried up because of the precarious state of the banks (with excess real estate loans on their books at values muvch higher than the market value of those assets). By the wayt, do you think that Sakakibara performance on Japan's TV will increase or decrease confidence in Japan's financial institutions? Zeev

To: Rational who wrote (209)	12/28/1997 6:09:00 PM
From: Tommaso	Read Replies (4) \| Respond to of 9980

RE: Japan How about (not an original idea, of course) deliberate inflation? Just pass out the Yen and change trade policies so as to encourage them to spend it on imported goods--like, maybe, buy up all the lumber in Oregon and build bigger and nicer houses. And pay people to build those houses. I know there's not much land, but one can always build upwards. Maybe they should just print Yen and buy gold with it. They need to import more, and gold would be the easiest thing to ship in. Since no one else has a solution I just thought I would make one up!