Re:Japan Starts to Recharge After Two Lost Economic Decades
by rluhar on Monday May 20, 2013 @05:24AM
(#5736706)
Excellent question - they wouldn't. But firing up the printing presses would cause inflation. This is bad news when Japan is not self-sufficient for energy or for some food production.
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Re:Japan Starts to Recharge After Two Lost Economic Decades
by kaonashi on Monday May 20, 2013 @06:27PM
(#5740549)
Right, but if you're printing and putting people to work with it, inflation is much less of an issue (more money chasing after more goods & services).
It's only when you're at your production capacity and still keep printing that you start seeing more money chasing after the same amount of goods.
Japan's unemployment is ~4%, low compared to other nations, but still high historically. Their labor force participation rate is about 8% below the U.S., though. There's lots of room to put people to work.