Takeo Hoshi Quoted in "The Chronicle of Higher Education"
Professor Hoshi presents a parallel between the US and Japan at the American Economic Association's annual meeting.
01/26/2009
David Glenn,
The Chronicle of Higher Education
"...Takeo Hoshi, a professor of international economic relations at the University of California at San Diego, and Anil K. Kashyap, a professor of economics and finance at the University of Chicago, presented a gloomy analysis of the parallels between Japan's mid-1990s financial crisis and recent events in the United States. (Among many other things, Mr. Hoshi quipped, in each crisis the incumbent political party was replaced by a leader whose name began with "Ob.")
Mr. Hoshi argued that Japan's economy had stagnated for so long in part because the government's bailout strategies encouraged banks to support "zombie firms" — companies so inefficient that they should have gone out of business. That policy, he said, impeded the emergence of new, better-run firms. In the American case, he said, the bailout of automakers might be a sign of a similar mistake..."
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