Soleron said:
So no one wanted to try in case they accidentally broke it then? |
Deflationary problems are rare, due to prevailing attitudes amongst global central banks. The way floating-exchange currencies go, actual deflation is rare, and the fact that the Bank of Japan stuck to a determined Classical approach through the last twenty years of economic stagnation is what made the Yen seem so attractive after the Great Financial Crash when everyone else became determined to print their way out of the problem, Japan's depressed economy along with a central bank determined to enact a tight monetary policy made the Yen a prime investment currency.
"spend your way out" always works for deflation, with the real risks being market dependency and undermining your own government bonds (the latter being where the real risk is for the Japanese, who have funded their tremendous debt on mostly domestic-owned bonds, and if the Japanese people lose faith in government bonds as a source of retirement investment, they could have a catastrophic collapse).
Monster Hunter: pissing me off since 2010.
