Subject: Economic System

Posted by Kaoru Yamaguchi on 10/16/2008
In Reply To:Economic System Posted by Jay Forrester on 10/15/2008

Message:

Thank you, Prof. Jay, for your interesting analysis on the role of Fed for the current financial crisis,
which Prof. Krugman, this year's Nobel Laureate, missed in his NY Times article.
In the case of Japanese bubbles followed by the so-called lost decade of economic recession in 90's, the Bank of Japan was said to have forced excessive loans to real estates through
its window guidance, an informal, yet very forceful monetary policy used by the BoJ.
I wonder why the central banks in Japan and the US were seen behind the scenes in
the recent major financial crises. What are their roles in the system?
Do they get some feedbacks within the system?