Milton Friedman would be aghast at economist Nicholas Smith's take on Japan's deflation.
The Nobel laureate is probably best known for his argument that inflation is always and everywhere a monetary phenomenon. When too much money chases too few goods, prices surge. Japan, of course, is beset with the flipside of this dynamic. Too little cash chasing too many goods is thought to be at the root of an economic funk that's now entering a third decade. (Bloomberg)
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