Been There, Done That

World Today, TheVol. 64 Nbr. 11, November 2008

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Summary


With a public debt to gross domestic product ratio of some 170 percent, highest by far in Organisation for Economic Co-operation and Development countries, and interest rates at a rock bottom 0.5 percent, analysts are worried that the government does not have effective policy options.

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Been There, Done That

wHEN A BRITISH FINANCIAL EXPERT in Tokyo confided recently that only Japanese banks stood between the global banking system and the abyss, I could not help replying, 'that's a scary thought.' Having had ringside seats for Japan's lost decade of the 1990s, and recalling its bumbling bankers frittering away trillions of yen, it is hard to imagine the gnomes of Tokyo playing Sa...

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