[Marxism] Re: Marxist analysis of conditions 'requiring quantitativeeasing' in Japan?
x03002f at math.nagoya-u.ac.jp
Thu Mar 9 07:19:27 MST 2006
See Makoto Itoh, The Japanese Economy in
Structural Difficulties, Monthly Review of
Apr 2005. Unfortunately the article is not
on the MR website.
One reason capitalists hate deflation (falling
prices) is because it causes buyers to defer
spending because their money will be worth
more tomorrow and the day after than it is
today. It can also drive up the value of debt,
making it harder to pay of, where inflation
often does the opposite. Thus deflation can be
be part of a powerful negative feedback loop,
discouraging spending and growth, and hence
driving down profits.\
Others probably have more to say about this.
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