Japan's lost decade and Inflation

Started by Travis Retriever, February 07, 2010, 02:07:59 AM

Previous topic - Next topic
According to the end of this video:
[yt]n9kEmZB5luM[/yt]
the reason why Japan's massive deficits didn't lead to inflation was because they weren't financed by printing money.
Is that true?

Why did Japan experience so little, if any inflation during their lost decade, in spite of massive deficits and government debt?
"When the mob and the press and the whole world tell you to move, your job is to plant yourself like a tree beside the river of truth, and tell the whole world—'No. You move.'"
-Captain America, Amazing Spider-Man 537

But how can this be?
I thought that one of the points of your "Fractional Reserve Banking" video was that deficits are the cause of inflation?
What's was with Japan?
"When the mob and the press and the whole world tell you to move, your job is to plant yourself like a tree beside the river of truth, and tell the whole world—'No. You move.'"
-Captain America, Amazing Spider-Man 537