Written by: A. Allan Schmid
Primary Source: The Troublesome Economist
Japan’s economy has been in the doldrums for years. So what are they doing? Their central bank is buying government debt just like the US Fed was doing. Supposedly, these purchases keep interest rates low and stimulate borrowing and growth. But the evidence is to the contrary in a country with zero interest rates and still little investment. If this policy worked it would have worked before now, but evidence be damned! We live in a world driven by ideology and bankers.