Well when you have a tightening of monetary policy through central banks and other international agencies impeding on domestic policy, there will always be issues of stagflation. The current FSA (Financial Services Agency) and FSB (Financial Stability Board) determinations take effect this year in Japan, and the increases of that capital ratio requirements can only have detrimental effects on economic growth and further compound stagflation, which has plagued Japan for more than 10 years now. I was wondering if the Great Depression of the 1930's had its nexus in just such irresponsible policy. I understand the need to keep banks liquid, but this runs counter to expansionist economic policy. And who benefits ultimately....??????
