China and Japan are in a Horse Race to Win the Financial Repression Award for 2014April 30, 2014
By Uncategorized in
With yet another month of data indicating falling real wages in Japan and amid further currency depreciation in China, we got to thinking that maybe these two countries are in a race to win the most exemplar financial repressor award for 2014. Indeed, the below non-exhaustive list of key criterion to be considered a financial repressor are all currently being met by both countries:
So there you have it. Both counties are engaging in a set of policies aimed at transferring income from the household sector to the state and/or private business sector. Unfortunately, unlike the Kentucky Durby, it will take a little longer than two minutes to determine the outcome.