What Japan Abe needs to do

What Japan Abe needs to do : In Japan, Prime Minister Shinzo Abe's government has made significant headway in overcoming almost two decades of deflation, thanks to monetary easing and fiscal expansion. The main uncertainties stem from the coming increase in the consumption tax and slow implementation of the third "arrow" of "Abenomics," namely structural reforms and trade liberalization.


Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics

In Japan Abe boosted Growth and stopped Deflation

In Japan, the first two “arrows” of Prime Minister Shinzo Abe’s economic strategy – monetary easing and fiscal expansion – have boosted growth and stopped deflation. Now the third arrow of “Abenomics” – structural reforms – together with the start of long-term fiscal consolidation, could lead to debt stabilization (though the economic impact of the coming consumption-tax hike is uncertain). - in project-syndicate


 Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics

I am not excessively concerned over Japan

 There is a whole bunch of counterarguments. First, you achieve 2% of inflation only when growth is robust. The better the growth in Japan – either because of monetary and fiscal stimulus or structural reforms – the better is the outlook for the debt dynamics. Second, there is no 1:1 relation between inflation rate and long term yields, as long as a central bank is aggressively buying a big fraction of these bonds for a prolonged period of time. Then the real rates tend to become negative – if inflation goes up even more, which again helps the debt dynamics. I am not excessively concerned over Japan. Of course, in the medium term Japan needs more structural reforms to enhance its growth potential, because only growth can really resolve the debt dynamics, fiscal adjustment alone is not sufficient. But they have time.- in fuw.ch


 

Nouriel Roubini

Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics

I am not excessively concerned over Japan

And how about the original: Japan? If Abenomics works, inflation should rise and with it yields. How big is the risk of reaching a tipping point, when Japan will have trouble servicing its huge debt?
Nouriel Roubini : There is a whole bunch of counterarguments. First, you achieve 2% of inflation only when growth is robust. The better the growth in Japan – either because of monetary and fiscal stimulus or structural reforms – the better is the outlook for the debt dynamics. Second, there is no 1:1 relation between inflation rate and long term yields, as long as a central bank is aggressively buying a big fraction of these bonds for a prolonged period of time. Then the real rates tend to become negative – if inflation goes up even more, which again helps the debt dynamics. I am not excessively concerned over Japan. Of course, in the medium term Japan needs more structural reforms to enhance its growth potential, because only growth can really resolve the debt dynamics, fiscal adjustment alone is not sufficient. But they have time. - in www.fuw.ch


Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics

Roubini ‏: Japan Growth Figures add noise not clarity to sales Tax Debate

Nouriel Roubini ‏: To raise or not to raise; Abe's Hamletic dilemma "Japan growth figures add noise not clarity to sales tax debate" http://on.ft.com/13eaCjC - in twitter

Nouriel Roubini : Japan ~ Abenomics is not just a Monetary and Fiscal Stimulus

Nouriel Roubini : “Abenomics is not just a monetary and fiscal stimulus,” it’s also increasing nominal wages to boost consumption, among other actions, said Roubini. “There is going to be volatility,” he said, but he does not see a crash of Japan’s stock market, yen or Japanese government bonds.

“Japan for once in 20 years could be a better story than other markets,”

Roubini : Japan Sinks Into Technical Recession

Nouriel Roubini :"Japan Sinks Into Technical Recession With Two Contractions http://bloom.bg/SQgHez via @BloombergNews " - in twitter

Roubini : Japan needs to significantly depreciate the Yen

In an interview today with CNBC Dr Nouriel Roubini talked about the Japan quake and its impact on the global economy , the future for the Yen and the Japaneses economy in general and its impact globally "Japan is going to need significant depreciation of the yen to increase its net exports because domestic demand is going to be anemic for a while. Therefore on a fundamental basis, the yen is going to be much weaker rather than stronger because you need improvement of external balance given the shock to the domestic economy," Nouriel Roubini told CNBC

Roubini : Japan is on a verge of a double

Nouriel Roubini :"Emerging markets are growing but rest of the world—half of euro zone is not growing, it is contracted, the periphery, Japan is on a verge of a double dip, emerging markets are doing well but many of them like China depend on economic growth in West Europe and Japan. Therefore the slowdown of US, Europe and Japan is already leading to an economic slowdown in China and India and even in Brazil and thus they cannot be remained locomotives of global growth, China is not large enough to be the only engine global growth, we need growth in United States, in Europe and Japan that is not occurring."
in www.moneycontrol.com

Nouriel Roubini : Japan outlook anemic

New York University Professor Nouriel Roubini said there’s a high probability of another recession in the U.S., with Japan’s outlook “anemic,” underscoring risks to the global recovery.

China, the world’s fastest-growing major economy, may face greater headwinds should there be weak growth in the U.S. and Europe, Roubini said in Kuala Lumpur today, where he is attending a conference. Second-quarter gross domestic product figures for the U.S. are likely to be revised lower after “awful” June real-estate numbers, he also said.

Austerity measures to cut debt in advanced nations are hurting consumer and business confidence, and households in some of the largest economies are holding back spending. Emerging economies may have to get used to relying on domestic demand in a period of subdued growth for developed countries, Roubini said.
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