Today, I will provide you with a video recorded during my work in Japan in the second half of this year. It lays out a series of interesting themes that in part form the research plan that my colleagues at Kyoto University and I have developed for the coming year. My hope is that by the end of 2023, we will be moving forward with the program and maybe be able to hold some kind of event in Japan later next year (Covid allows) to spread the knowledge.
Japan and the World Economy from the Perspective of MMT
One of the things I did recently while working in Japan was record a video with my colleague Professor Satoshi Fujii at Kyoto University where we discussed a range of issues about the Japanese and global economy.
The discussion is part of a series of presentations we will be producing over the coming year, including the publication of a joint book on these issues.
This is a very long session, recorded on November 3, 2022.
No script – just a few topics we were interested in discussing.
It aims to tease out a set of research questions.
A number of graduate students from Kyoto University were in attendance and media skills were provided by the University’s Multimedia Department.
Thanks to the editor of that unit and so on.
There was an interpreter on hand in case we needed clarification on anything that was said – you know my Australian drawl! – She’s amazing.
The following timeline roughly documents how the conversation unfolded.
I provide it because the session is long and you may only be interested in certain topics.
00:00 to 02:45 Introduction
02:25 to 13:00 The state of the Japanese economy before the pandemic – the “lost decade”, the real estate crash of 1991.
13:00 to 26:30 Discussion of Japan’s sales tax hike and its impact on Japanese household consumption and wage growth. The role of household debt.
26:30 to 36:00 The role of mainstream economists in Japan’s sales tax hike and its impact on public and private debt. The rise of austerity thinking in Japan.
36:00-46:00 Deflation in Japan is coming, and its negative impact on corporate investment and surplus retention.
46:00 to 54:40 Denying the failure of economists on the sales tax. The rise of groupthink.
54:40 to 1:05:00 The start of 2021 inflation in Japan and the world. Transient vs. Structural Forces and Central Bank Policy Analysis.
1:05:00 to 1:14:00 Discussion of corporate taxation and policy bias towards shareholders under neoliberalism.
1:14:00 to 1:33:00 Special focus on current rate hikes – lack of clarity on monetary policy. Is Inflation Back to the 1970s?
1:33:00 to 1:40:00 Global financial crisis and fiscal policy responses.
1:40:00 to 1:44:00 Japanese politicians avoid criticism and policies targeting low-income families.
1:44:00 to 1:49:00 In the early days of the pandemic, all ideologically persuaded governments immediately became pragmatic ways.
1:49:00 to 1:51:00 Impact of government fiscal expansion during Covid on public perception of fiscal deficits etc.
1:51:00 to 1:56:30 Discussion of Japan’s low unemployment rate and the value of job security.
1:56:30 to 1:57:00 Low inflation leads to wage suppression.
1:57:00 to 1:59:30 The importance of tolerance in suppressing dissent in Japan.
1:59:00 to 2:16:00 Future challenges in Japan – health, climate, aging society, decentralization. How austerity can wreck the future.
2:! 6:20 to 2:19:30 Misuse of Adam Smith’s book – Social Stability.
2:19:30 to 2:25:00 Impact of US pressure on Japanese regulations and food safety issues. Localism and globalization.
2:25:00 to 2:31:00 North Korea, global instability. Return to national self-sufficiency.
2:31:00 Closing casual discussion about zen eating etc.
Enough for today!
(c) Copyright 2022 William Mitchell. all rights reserved.
