>There seems to me good reason to think Japan will not reptariate that much
>capital in the near future;plus, I don't think Big Boy Wonder Larry Sumners
>is joking about the US commitment to maintaining a strong dollar (what's
>the meaning of these pronouncements--Brad?). Most importantly, too much
>should be made about the size of the current accounts deficit in
>predictions of US dollar movements--Krugman just ignores the counter
>evidence. Imbalances are now more easily financed by flows of private esp
>for the reserve center.
Rakesh, you're sounding like a Keynesian, or a supply sider or something. You really think there's no limit to U.S. foreign indebtedness? Don't you believe in Stein's law (if something can't go on forever, it won't)?
> > And he's probably
> >right about Japan too - why not monetize bond debt? What do they have
> >to lose at this point?
>
>
>Doug, what would this entail?
The Bank of Japan buying scads of bonds, forcing down long-term interest rates.
Doug