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

To: Tundra who wrote (6958)	10/5/1998 10:12:00 PM
From: Zeev Hed	Respond to of 9980

Tundra, I think that is actually a pretty good idea, if they couple this with a campaign explaining the importance for their economy of a boost in domestic demand, I think that might actually jump start the economy. While the direct effect, might only be .7% of GDP, it is the secondary effect of these yens in the economy that are important, if these yens continue flowing, and draw with them additional yens that would otherwise be "saved" they could get a total impact twice as big, and believe me, a 1.5% swing in GDP should be enough to swing the engines back into forward motion. I would have preferred 3% boost, but I'll take what they give, maybe they are finally seeing the precipice and maybe we are starting to see the light at the end of the tunnel. Zeev

To: Tundra who wrote (6958)	10/6/1998 10:26:00 AM
From: Robert Douglas	Read Replies (1) \| Respond to of 9980

Re: Milton Friedman would be amused. The Nobel prize winning economist, who once joked that the fastest way to boost money supply was to throw dollar bills out of helicopters, may soon see a variant of this idea put to the test. The Japanese government said yesterday it was considering plans to hand out ¥30,000 (£130) gift vouchers to every one of the country's 125m inhabitants. It seems that the same result could be achieved with a lot less fanfare by cutting taxes. Of course that would mean that the powers-that-be would tacitly be admitting that they made a mistake by raising sales tax rates in the middle of an ongoing recession. Is there anyone alive that doesn't realize that this was a mistake? It certainly would be on my list of nominees for “boner of the decade”. Confound those stubborn, face-saving Japanese bureaucratic fools! -Robert