There is much to learn from looking at economic developments in Japan

Actual developments in Japan send us a number of important messages about the functioning of economies: An expansionary monetary policy cannot restore inflation when income distribution is skewed at the expense of employees; Beyond a certain stage, a skewing of income distribution at the expense of employees and the resulting increase in profitability no longer increase investment, but simply drive companies to accumulate cash reserves, which is really pointless; An expansionary monetary policy becomes irreversible when there is massive accumulation of public debt, as the expansionary fiscal policy offsets the weakness of wages and household demand; The role of banks is increasingly to finance governments when it is the government and no longer the private sector that has a borrowing requirement . These economic mechanisms that appear in Japan are also now increasingly present in the euro zone.