Category Archive: Richard Koo and Sector Balances

Main Author Michael Pettis
Michael Pettis

Wall Street veteran, merchant banker, equities trader, economist, finance professor, entrepreneur — iconoclast — Michael Pettis is a unique individual living and working in China, at the heart of the world’s most exciting and vibrant economy.

Having learned firsthand how markets operate during his years on Wall Street, Michael has taken his knowledge and insight and applied them to the Asian financial markets as an expert analyst, commentator, and participant. His work and research focuses on monetary policy, trade policy, and the development of the banking and financial markets in China.

Richard Koo: If Helicopter Money Succeeds, It Will Lead To 1,500 percent Inflation

After today's uneventful Fed announcement, all eyes turn to the BOJ where many anticipate some form of "helicopter money" is about to be unveiled in Japan by the world's most experimental central bank. However, as Nomura's Richard Koo warns, central banks may get much more than they bargained for, because helicopter money "probably marks the end of the road for believers in the omnipotence of monetary policy who have continued to press for further...

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Michael Pettis: Abenomics is just a measure to enforce higher household savings

This article by Michael Pettis remains one of the most important contributions on Abenomics. If anybody wondered by GDP contracted in 2014. It is not only the sales tax but even more the weak yen that forces people to save more. Both companies and finally also consumers are savings more. Companies do not invest.

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Weak Yen, Is it Really a Currency War?

Some journalists, like Ambrose Evans-Pritchard of the U.K.'s Telegraph and Michael Casey of the Wall Street Journal, have already claimed this to be a shot in the currency wars. Casey focuses exclusively on the BOJ activity and does not even mention GPIF. Evans-Pritchard spends most of his time talking about the bearish yen implications of the increased BOJ purchases, and mentions GPIF only at the very end of the his essay, and even then to dismiss...

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The trade deficit and the collapse of manufacturing, the causes of the U.S. secular stagnation?



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Monetarist and Austrian Critique against MMT



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7d) Richard Koo’s and other Sector Balances

A list of long-term sector balances and related provided by Nomura's research institute and its chief economist Richard Koo.

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Balance Sheet Recession becomes mainstream, four years too late



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Richard Koo and Abenomics



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Chartalism and Modern Monetary Theory, MMT



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New Arthurian Economics and Martin Wolf’s “Strip banks of power to create money”



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Cultural Reasons for Japan’s Deflation: Can the U.S. Go into a Balance Sheet Recession?

The power distance between employer and employee enforces the importance of the leader, the entrepreneur. Moreover, the collectivite Asian society does not want unemployment, employees prefer to renounce to salary hikes in favor of the collective. These cultural reasons can qualify as drivers of the Japanese balance sheet recession.

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El-Erian: The New Normal



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How Long Will the U.S. Recovery Last? A Reminder: The False Japanese Recovery in 1998/1999



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Explaining Richard Koo to Paul Krugman, to Austrian Economists and the SNB



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Ageing and Immigration in the U.S. and Japan and the New Normal



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Richard Koo’s newest paper: About the Ineffectiveness of Monetary Expansion



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The World in Balance Sheet Recession, a 2012 update



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Richard Koo: Balance Sheet Recessions



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The Wealth Effect: Rising House Prices Sustain Spending



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Richard Koo, Revitalizing the Eurozone without Fiscal Union, April 2012



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