You can read Shirakawa Masaaki's memoir Tumultuous Times and find that the real problem was the inaction on the fiscal side(echoed by today's China and Korea). Or Richard Koo's books on balance sheet recession. If no one is willing to borrow then money stock cannot grow despite ZIRP. If QE is done but the proceeds are used to build highways to nowhere velocity will remain low. As a matter of fact, Japan's monetary policy is primarily set by the Federal Reserve through carry trade and REER. While an undervalued currency stokes growth(and trade wars) for som... (read more)
You can read Shirakawa Masaaki's memoir Tumultuous Times and find that the real problem was the inaction on the fiscal side(echoed by today's China and Korea). Or Richard Koo's books on balance sheet recession. If no one is willing to borrow then money stock cannot grow despite ZIRP. If QE is done but the proceeds are used to build highways to nowhere velocity will remain low. As a matter of fact, Japan's monetary policy is primarily set by the Federal Reserve through carry trade and REER. While an undervalued currency stokes growth(and trade wars) for som... (read more)