I think your remarks are good, but I would like to add a few more critical points as an economist. First, the RGDP is a measure that captures more of the “supply side” of an economy, so it addresses issues related to the total factor productivity of an economy. In the case of Japan, as previously noted by Prescott and Hayashi in their article on the crisis of the Japanese economy in the 1990s, there is a major problem of productivity that affects the capacity for real growth. To the surprise of people who grew up with the myth of Japanese efficiency, Japan has been the economy with the lowest labor productivity among the G7 economies for over 50 years. There is a big problem with respect to lifetime employment, difficulties with union reforms, diseconomies of scale and an extremely low number of startups. A recent research by BOJ researchers indicates that the Japanese economy has serious problems of capital accumulation and low productivity of its main companies (which have practically become cyberpunk megacorps paralyzed by the lack of incentives for innovation).
In this scenario, it is very unlikely that there will be a real positive change in the picture of real economic growth for Japan. Eliezer could advocate whatever monetary policy he wanted, but he would still probably be wrong, because the solution would be more through microeconomic reform. Perhaps an analysis from the point of view of new-classical macroeconomics is more fruitful than an analysis from the market monetarism paradigm.
I think your remarks are good, but I would like to add a few more critical points as an economist. First, the RGDP is a measure that captures more of the “supply side” of an economy, so it addresses issues related to the total factor productivity of an economy. In the case of Japan, as previously noted by Prescott and Hayashi in their article on the crisis of the Japanese economy in the 1990s, there is a major problem of productivity that affects the capacity for real growth. To the surprise of people who grew up with the myth of Japanese efficiency, Japan has been the economy with the lowest labor productivity among the G7 economies for over 50 years. There is a big problem with respect to lifetime employment, difficulties with union reforms, diseconomies of scale and an extremely low number of startups. A recent research by BOJ researchers indicates that the Japanese economy has serious problems of capital accumulation and low productivity of its main companies (which have practically become cyberpunk megacorps paralyzed by the lack of incentives for innovation).
In this scenario, it is very unlikely that there will be a real positive change in the picture of real economic growth for Japan. Eliezer could advocate whatever monetary policy he wanted, but he would still probably be wrong, because the solution would be more through microeconomic reform. Perhaps an analysis from the point of view of new-classical macroeconomics is more fruitful than an analysis from the market monetarism paradigm.