Richard Koo on the Current State of the Japanese Economy

This is a very interesting, though somewhat long, talk by Richard Koo given at the Foreign Press Center Japan, on January 18, 2011, on Japan’s experience of the Great Recession. There are many good points made here, not least of all that a debt deflationary lost decade is becoming a reality for a number of Western nations. Richard Koo has a very similar view of the crisis as Steve Keen, and underlying them both is Hyman Minsky’s financial instability hypothesis, which in turn was developed from Irving Fisher’s debt deflation theory.