Japan: Up or Down?

[Brad De Long]

>Henry C.K. Liu wrote:
>>
>>
>> Stiglitz and Krugman are both selling snake oil (quoting the Japanese)
>>and are
>> merely doing the "if A does not work, how about B or C or A+C?"  They
>>haven't a
>> clue on how to make Asia recover.  The fact is Asia will not begin to
>>recover
>> before the US economy stops exporting deflation to feed its own bubble.  The
>             ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
>> beginning of global recovery will come after the US economy crashes.
>>The longer
>> the US bubble hold, the more severe the global pain when it comes.  And
>>if the
>> pain is severe enough, neoliberalism may well be the casualty.
>>
>
>I haven't heard this before, and it sounds interesting.  In the 1980's a
>criticism of Japan was that it was exporting unemployment to its trading
>partners.  How does the US export deflation?
>
>Chris

It doesn't. This claim reaches a rare degree of high incoherence...

Brad DeLong