Sobering words from BOJ official Nishimura. He says there are remarkable parallels between the S economic situation today and the “lost decade” of the 90s in Japan. Negative feedback between financial distress and the economy is hard to shake, he says.
JPY strength was a feature of the lost decade, as dollar strength has been a feature of the credit crisis. The recent dollar weakness can be seen as a sign of hope, I’d wager.
