It's been a lost decade for Japan but they've always had the ability to fix their own troubles, they just felt too ashamed to do what was needed. Some signs now point to a possible Japanese reflation coming. Look to the value of the yen because it might start to matter again.
Japan reflation will upset the applecart for all the SE Asian Japan wannabe countries who are trying to follow Japan's path to success. They will survive the new competition but it will be very uncomfortable. The more an asian country is delicately balanced doing its own high wire act, the less welcome Japan's re-entry into the world of serious economic players will be. The PRC will likely be very unhappy as it tries to avoid a spectacular crash of its own. Can both these Asian powerhouses grow quickly at the same time? I wonder.
Posted by TMLutas at July 10, 2003 03:03 PM