NO.185 Could the BoJ's quantitative easing really be causing the Great Depression? ・・・However, intermediate considerations.

The BOJ's quantitative easing policy causes a great depression without a deflationary spiral.


Currently, the Japanese economy may be about to fall into the Great Depression. However, since deflation has not deteriorated, no one notices this.
Currently, the BOJ's quantitative easing policy is about to cause a Great Depression without a deflationary spiral.

No matter how much the Bank of Japan eases quantitatively, regular employment will not increase. That is the answer.


I compiled the principles of the Great Depression and macroeconomics in my own way. If you like, please refer to the following two links.
This article began with the intention of inviting you to an article that appeals to the real state of the Japanese economy. Finally, I decided to make an invitation to the next two links.




I will define the Great Depression.


“A vicious circle of unemployed people and a recession.”
I try to define that.

The Great Depression in 2019 is not necessarily a deflationary spiral.


Is the deflationary spiral a vicious process of falling prices and a recession? Here we consider why prices fall. Is it because the amount of Banknotes supplied to society is decreasing? If that is the case, it means that the bank is collecting loans and returning them to the Bank of Japan? .

Is the reason why the bank does the lending and lending is because the loan becomes uncollectible and does not cause a loss?
If the interest rate is very low, the bank does not need to remove the credit.

Isn't a lot of non-regular employees and a lot of unemployed people having the same impact on the economy?

At this time, the unemployed will work part-time. The distinction between non-regular employment and unemployed may be difficult.
Many non-regular employees want to become regular employees to guarantee their lives. Same as unemployed.
For the economy, that person cannot consume enough.

If the number of people who cannot consume enough increases, the business performance of many companies will deteriorate. Companies with poor performance will cut labor costs. In Japan, the number of workers dismissed will be small.
If a regular employee is ordered to wait at home, the salary will drop, making it the same as non-regular employment.

Companies with poor performance will refrain from hiring regular employees. More non-regular employees.

Eventually, corporate bankruptcies will continue.
As a result, more and more people are unable to consume enough.
And more and more companies get worse.
A vicious cycle occurs.

The current land price in Japan seems to have started to rise. If that happens, rent will inevitably increase.
If many people have to divide much of their income into their rent, they cut their consumption accordingly.
In America, this may be happening. I also saw that news. In the United States, rents are high, and it seems that homeless full-time employees are increasing.


The cause of the Great Depression will be the extreme expansion of the Economic inequality.


Does the current world finance have built-in dynamism that distributes a large part of the world's wealth to a small number of wealthy people?

Due to the current global ultra-low interest rate, the supply of currency will increase worldwide.
Most of the currency is distributed to a few rich people. The vast majority of people continue to lose income or maintain the status quo.

In this state, prices should rise for the majority of people compared to their income. The amount of currency is increasing compared to the size of the product.
If the product price rises, it will not sell, so companies will force the price unchanged. As a result, companies will cut labor costs.

Still, for example, property prices will soar. Many people are burdened with rent payments and contract consumption. Many corporate performances deteriorate.

One day, many companies will not be able to endure, and corporate bankruptcies will continue. With the emergence of a large number of unemployed people, a vicious cycle of recession begins. The Great Depression of the Japanese economy.
Because it is a very low interest rate, it will not be a deflationary spiral. The bank doesn't have to worry about lending or lending.
This is due to the BOJ's quantitative easing policy.

I guess so.

Conclusion as of 3019.12.26.


If the BOJ continues to hold the government bonds and stocks it buys without managing them in the financial markets, this will not be a factor in the Great Depression.
At the moment, I have concluded that the Great Depression of the Japanese economy was the Ministry of Finance's "bone reform."
Reference article.
The BOJ's ultra-low interest rate policy helps investors to raise Bank of Japan notes for investment. The gap between rich and poor will widen as investors conduct their investment business. This will be a factor in the Great Depression of the world economy.


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