Japan’s Massive Money Experiment Is Over. Now What?

On March 19, Japan’s central bank ended its latest economic experiment. The BOJ scrapped the world’s last negative interest rate policy, with the first rate hike since 2007. The move ends the most aggressive monetary stimulus program in modern history, signaling confidence that the country is finally leaving behind years of deflation and economic stagnation. How will this massive shift disrupt everyday lives across the country and beyond?

00:00 - Introduction
01:14 - The Japanese economic miracle
02:37 - Bubble burst
03:18 - Decades of deflation
04:23 - Era of QQE
05:40 - Inflation comeback
06:52 - BOJ ends negative rates

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[MrTandtrollet]

Living in Japan these past 30 years is pretty pleasant though if you realised that chasing never ending growth isn't the purpose of life.

[RabidPanda]

all i heard was everythings gonna be more expensive now. in an enthusiastic voice

[haiontop]

Japanese can finally experience rising price like the rest of the world.
Who wouldn't want their living cost double every decade or two.

[TravelChannelOne]

Hats off to Kurumi for compressing 32 years of BOJ activities into a 8 minute video....my econ professor lost me at the Asian crisis....

[SomeSortOfMan]

“Since the end of WWII, Japan has been ground zero for …”
I nearly spit out my tea.

[inf]

I like how this video skips why 'bubble' happened in first place, when USA were threatening Japan with sanctions and forced it to change monetary policy.

[kumatoni]

Lived in Japan for a long time, and their economy proved that once you get to a certain level, you don't have to be constantly straining for endless growth.

[brovarnyi]

All in this video just shows that Japanese lived the best lives and now they would feel the same disappointment as we all.

[tahirisaid]

Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

[Gounesh]

Think an economy so strong that even printing money results in deflation.

[forte]

unfortunately this video completely skips the context to the leadup of the bubble, which was political pressure from the US and the plaza accord.

[blurryface]

This is an unfortunate, large-scale example of "don't fix what's not broken"

[TalEdds]

Stagnation is better than the price inflation with stagnant wages. Japan had things right, in the current world, where prices are doubling but wages are not changing. Infinite growth is impossible without infinite resources, Japan was being pragmatic, now they have lost their way.

[TheEmolano]

Living in Brazil, I can't understand at all how no inflation could be bad. Imagine paying the same for rent and groceries for 10 years, even if your salary din't increase at all

[Mirlohu]

Are the first few seconds supposed to be bad?
Because it sounds incredible compared to what we have right now (rising prices & stagnant salaries)

[megustAslagt]

he says 'no inflation makes people attach a product to a certain price'. Well I live in a country with inflation and I do that. You can hear it around 'it used to cost only this much'. Everyone does that. I feel like it's human to attach stable values to things that don't change. That makes inflation so weird, because it's one of those human constructs that runs counter to human nature.

[gumerzambrano]

I was just in Japan for a month and couldn't believe how cheap it was. A water at Disneyland 200 yen which is $1.30. Super reasonable. Lodging and food was also super affordable

[kevjn]

Inflation is a wealth transfer from the poor (cash holder) to the rich (asset holder).

All small inflation does is hide bad companies by allowing them to lower your real wage without you noticing.

[Frosty]

Now Japan can experience the joy of rent doubling every few years. Woohoo!

[gregh]

they're still at zero and said they will step into the bond market if things get too out of hand so yield curve control is still going to be used. This was a non event. nothing has really changed