Professor David Weinstein Quoted in the Economist
Japan’s economy is stronger than many realise
. . . It helps that the country borrows in its own currency, the government has big financial assets and the boj holds a big share of the debt. But as David Weinstein of Columbia University argues, Japan has also managed to contain spending. Since 2000, he writes in a paper with Mark Greenan, spending per head on the elderly has actually fallen. “There’s a quiet functionality that people miss,” says Mr Weinstein. “Markets are sanguine because Japan has a rare ability to adjust.” With low marginal tax rates, there is also room to raise revenues . . .