Viewpoint by Jonathan Power
LUND, Sweden (IDN-INPS) - The announcement was made on August 15 by Japan’s Finance Ministry: In the last quarter of the year the Japanese economy grew at an annualised rate of 0.2%. “One wonders if the economy will remain at a standstill for the rest of the year”, the Financial Times asks.
But then Japan’s economy has been becalmed for 30 years. Even though the government has poured billions of dollars into the economy it has had only a small effect in boosting demand.
One wonders when the government will give up and what happens then – another decade of minimal growth? If that is what happens how much does it matter?