kdo

Japan 101

You should read John Koo. I don't agree with everything he says, but the fundamental premise I believe is correct and I believe he has good evidence to show it. The lack of lending came from the demand side. You don't borrow money when you have a huge hole in your balance sheet. You work your way down. But everyone can't do that, otherwise it starts to destroy the overall money supply. Japan has never been able to create money through their crisis, no matter what the central bank has provided.