Currencies and Inflation

Japan Considering Taxing Cash

Damned if you save, damned if you don’t…

Source: Times Online

Japan Considering Taxing Cash; “Nominal Rates of -4% Might be Closer to What is Required to Rescue the Economy from Another Deflationary Spiral”

Unorthodox, untried and, said one Bank of Tokyo Mitsubishi strategist, “in the realms of economic science fiction”, the recommendation has nevertheless begun floating around Tokyo’s corridors of power and economists have described Japan as particularly suitable as a testing ground.

I don’t know why they say it’s unorthodox and never tried before. Sweden has done it before, albeit in a slightly different form.

Edited to add: “Apart from France, within Europe, Greece, Norway, Switzerland, the Netherlands and Liechtenstein impose a wealth tax, although often with lower rates and higher thresholds of imposition than in France “