Category Archives: Japan

Parallel to US-China trade war, Japan & Korea fall out

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August 8, 2019 — I responded to 9 questions in an interview today with Chosun Ilbo.  They concern the US-China trade war and the new simultaneous dispute between Korea and Japan.

  1.  The trade war between the world’s two largest economies continues and it appears the war is spilling over to currency now. What do you think are the fundamental reasons for this conflict?

JF         It was legitimate for the outside world to ask China to make some changes.  But we did not sit down in a responsible manner with China’s leaders to negotiate. The reason for the trade war is that an ignorant and reckless man by chance became president of the United States. He has aggressively raised tariffs against China as well as other trading partners.  He has departed from past international commitments, from good economic policy and even from basic deal-making tactics. read more

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Let’s Forget about 2% Inflation

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July 28, 2019 — The Fed has some reasons for cutting interest rates at its meeting July 31, or subsequently if the US economy weakens. (And there are some good arguments on the other side as well, if growth remains as strong as it has been over the last year.)  But I find less persuasive one argument for easing: a perceived imperative to get inflation up to 2.0% or higher.

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Xi & Trump Miss a Chance to Expand Markets

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March 24, 2019 — Donald Trump has postponed until April the supposed deadline for a conclusion to China-US trade negotiations.  A good outcome for both sides would have China agree to better protect private property rights and to reduce the role of the state in its economy; the US agree to strengthen national saving and public investment; and both sides agree in the short-term to reverse their recent tariff increases and the resulting shrinkage of international markets.  Unfortunately this deal is not likely to happen. read more

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