Friday, January 9, 2009

Dilemma of Japan Economy

MC Shalom P. Hamou has commented on my post which I wholeheartedly subscribed from Christopher Lingle’s article published in Mint.   

First I agree with you in economics we should be a “straightforward to make the case that will be relevant, rationale and unconventional in logic. 

It may not be true that the Japan economy is “constrained… by the inherent conservatism of a society that places so much value on consensus”. In fact I would say the post modern society monetary policy which has been emulated from the stymied political community of central bankers around the world. Indeed this community failed to sense what the giant F A Hayek wrote in "Choice of Currency”. 

It is absurdity to Say “the problems of the Japanese banking system, for example, can be interpreted as arising in part from the collision of a traditional, relationship-based financial system with the forces of globalization, deregulation, and technological innovation (Hoshi and Kashyap, forthcoming.” I wonder if the developed world says the same thing that developing world (although wrongly) breach in their home. Where the unconventional developments of post modern monetary society march? 

There is nothing to lose “traditional strengths” if the nation marches toward better living condition with core rule of law value.   

Politicians around the try to play “a major role in… macroeconomis” which is a fiction in practical life. 

Perhaps it is true that the political “the conventional wisdom that attributes much of Japan’s current dilemma to exceptionally poor monetary policy-making over the past fifteen years…”has broken the “the banking system”. 

A nation’s price of commodities and services is not an end product to “stabilizing aggregate demand and inflation which is often deemed to be so. 

The biggest myth of twenty-first century will be the “responses,.. confused or inconsistent,  relied on various technical or legal” pundits in world.  

Back to Hayek read his choice of currency and his greatest theses of contribution to spontaneous economics. The problem of economics is not resources but information according to Hayek’s original contribution to economics. 

Finally it may be true that A Credit Free (read choice of currency), Free Market economy is a solution that will correct all of those dysfunctions.

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