Posted on January 9, 2010.
Why interest rates zero percent lead to stagflation in Japan in the last two decades? Why government spending and high interest rates zero percent lead to stagflation in Japan?
Politicians seem to make the same mistakes with the United Kingdom and the United States today?
Low interest rates are not "cause" stagflation. And in any case, Japan has not experienced inflation very much. In fact, their problem is more deflation than inflation.
