Only A Bitter Pill Can Cure Japan's Economic Ills

Japan's bubble economy started in the late 1980s as a result of U.S. pressure to keep interest rates down when the Japanese economy was overheating ("Revolt against the IMF," Asian Business, July 13). Now, the suggestion is to print more money to reverse the deflationary spiral. If we do this, the yen may plunge to 300 to the dollar. This would be a disaster for Japan and the rest of Asia and the world. We must not listen to the sweet remedy of "controlled inflation" by printing more Bank of Japan notes. The only way we can get out of the present crisis is to swallow the bitter pills of structural reform.

Toshiaki Yamamoto


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