Economic AHC and WI: Avoid 1990-2000s Japanese Deflation

A challenge and WI: Avoid the Japanese Deflation and describe how Japan would be today without almost 20 years of zero growth....
 
By some accident of fate, a raising star in economics circles named Ben Bernanke, Professor at Princeton University, gains the ear of influential Japanese policymakers at the Bank of Japan. The Bank of Japan begins implementing erratic policies that cause warnings of hyperinflation to appear in the Japanese and Western media. Instead, the boost in inflation expectations gets Japan off the deflationary trap and the economy begins to roll forward again.

This has to be pre-2002 Bernanke though. Sadly as soon as he joined the Federal Reserve Board, he began advocate the same cautious monetary policy we see now in the US that doomed Japan to 20 years of stagnation.
 

RousseauX

Donor
By some accident of fate, a raising star in economics circles named Ben Bernanke, Professor at Princeton University, gains the ear of influential Japanese policymakers at the Bank of Japan. The Bank of Japan begins implementing erratic policies that cause warnings of hyperinflation to appear in the Japanese and Western media. Instead, the boost in inflation expectations gets Japan off the deflationary trap and the economy begins to roll forward again.
How? IIRC the Japanese -doubled- their monetary base and resulted in neither inflation nor much stimulative effect on the economy. How do you get Japan out of its savings glut?
 
My Tiananmen TL is exactly exploring such a picture, and I would go more deeply into Japan soon.

I would say you could just delay the inevitable - and if the bubble burst is delayed until the outbreak of the Asian Financial Crisis, the entire world would be screwed up as Japan would be too large to fall. It won't just be deflation, but much worse consequences that could only be solved by wars or having all major Japanese banks going bankrupted, say being destroyed by the crazy policies of a 8-year long Ozawa prime ministry.
 
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