Slowing faster
Article Abstract:
Private analysts are wary of the Japanese government's forecast of a 3.5% GNP growth rate in FY 1992. Instead, the analysts have forecast that the growth could rate can be as low as 2.5%. The Bank of Japan reported that housing loans and private capital investment have decreased substantially. Although interest rates are falling as shown by the official discount rate that had been reduced to 4.5%, and while prime lending rate has dropped to 6%, companies are not borrowing. The manufacturing industries are also expected to slow production because of extensive inventories and the relative weakness of the retail trade.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
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Crushed by credit
Article Abstract:
The theory that money supply affects the level of economic activity appears obsolete after recent moves by the US and Japan showed that a reduction in a country's official discount rate no longer guarantees economic growth. The stagnant US economy showed no signs of recovery even after the country's official discount rates were reduced to their lowest level in 29 years. The same thing happened when Japan cut its discount rate. The adoption of a standard that would link money supply to increases in productivity is needed.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
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The offshore pinch: the rich have become poorer and cautious
Article Abstract:
The collapse of asset prices and continuing worldwide recession have led to changesin movement of money in different countries. Switzerland remains as a haven forthe rich people while the Caribbean serves as a market for conservative investors. Chinese and South Americans have been known to invest in blue-chip stocks, bonds and currencies in the Caribbean. Hong Kong also boasts of a secretive banking system but many are wary that it would not last after 1997.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1993
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