One Economist Suggests Tax to Make Japan Inc. Spend Their Cash
- Credit Suisse's Shirakawa calls for levy as last resort
- SLJ Macro's Jen says companies must `spend it or lose it'
Hiromichi Shirakawa.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
Japanese policy makers have taken extraordinary measures in recent years to yank the nation clear of deflation and create a better environment for businesses. They’ve had mixed results, and corporate Japan is yet to reciprocate with higher spending and wages.
That’s prompted some analysts to suggest more radical ways of compelling companies to deploy their cash hoard on capital investment and salaries. Hiromichi Shirakawa, a former central bank official who is now chief Japan economist at the Credit Suisse Group, is at the forefront of the debate with his plan to tax corporate savings.