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Gertrud Fremling

Macroeconomic policy can only do so much. Japan has a major problem of fewer and fewer people in the young cohorts. See http://www.nationmaster.com/country/ja/Age_distribution

With a shrinking number of workers and consumers, who would want to invest?

Thomas Rekdal

I could not agree with Gertrud Fremling's comment more. The demographic changes and welfare policies in both Japan and Europe are beyond effective control by macroeconomic policy makers--perhaps even in the sense of producing the least worst outcome. Investors can only hang on to the gunwales and hope for the best.

Gordon Longhouse

"Keynes urged devaluation of the pound against the dollar in the 1920s in order to stimulate the stagnant British economy, but the British Treasury refused because of Britain’s very substantial foreign investments, which would be worth less if the pound were weaker."

How is that again?
If the pound is less valuable relative to other currencies how can it be that overseas investments (presumably not denominated in pounds) would be worth less because of a devaluation of the pound? Surely they would be worth more to an English investor.
The investments that foreigners have made in England would be worth less by reason of a de-valuation.
It hardly seems likely that the British treasury made a mistake of this nature.

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