The issue is that in Japan actually the Federal bank crtiauled supply of money and that contributed to the bust.Huh? This is not the case at all. The Japanese central bank FLOODED the market with easy credit, even offering negative interest rates (i.e. PAYING banks to borrow from it). Unfortunately, this didn't help.Actually, the loose monetary policy in Japan is one of the main culprits behind the credit bubble. It encouraged the massive Yen carry trade (i.e. with people borrowing cheeply in Japan to invest elsewhere). Rate this comment: 0 0

by Friska 12:59:57 AM 2012.12.09