I've often wondered what the hell Japanese Economists think about their situation. I've been tearing out my hair at our Fed, and this has only been going on for about 16 months. Japan's needlessly been stuck in a liquidity trap for 16 years, for no better reason than their central bankers are completely incompetent. So what do they think? Well, once at an economics conference I met a guy who was both Japanese and a Monetary Economist, and his answer was that he hadn't really thought about it.
Here's a couple blog posts I came across. The first seems to be saying that if Japan prints too much money, then they'll have to deal with too much inflation. Well, yes, but then they can just raise interest rates. So that's much less of a problem than Japan's had the past 20 years. Another post on the blog talks about how, even with inflation, Japanese might still worry about the problem with aging society/saving for the future and structural problems, but the fact is, before deflation, Japan was converging on the living standards of the US and Western Europe rapidly, and since they've been stuck at around 2/3rds (perhaps higher gdp per capita than some of europe, but by working waaay more hours)...
The second post translates a few of my posts, which is obviously quite sensible.
Unfortunately, you if you can't read Japanese you might have trouble with those two posts...
I like the way they write "Thorstein Veblen" in japanese: soosutein bueburin. Nice ring to it.
16 minutes ago