Rare video interview with Richard Koo
For years the Western world mocked Japan’s attempts to recover from its spectacular debt-fuelled boom and bust, blaming the Bank of Japan for doing far too little and far too late, and lamenting Japanese fiscal stimulus as extreme recklessness, where the only achievement has been to propel Japan’s debt levels into the stratosphere. Now, seven years after much of the developed world’s own debt fuelled bubbles went pop, some people are starting to wonder if Japan’s post bubble experience was actually a good outcome, relative to today’s exceptionally dark prognosis for not just the Eurozone but other economic blocs too. Richard Koo has long seen the parallels between the Japan of the 1990s and where we are today. In this video he tells M&G Fund Manager Mike Riddell about his very accessible recent book, Escape from Balance Sheet Recession and the QE Trap.
Richard Koo: The Escape From The Balance Sheet Recession And The QE Trap