Lovers in Japan (Osaka version)

Krugman on the ratings agencies.

One thing you sometimes hear is that the game will be up when the ratings agencies downgrade U.S. debt. I wonder how many of the people saying this know that Moody’s and S&P downgraded Japanese debt in 2002, with Moody’s actually putting it below Botswana and Estonia.

And 8 years later, Japan can still borrow at less than 1 percent.

And didn't those same ratings agencies bestow crappy mortgage-backed securities with AAA ratings?

Yglesias discusses how appropriate government policies can work and did work in Japan in the face of a liquidity trap.

No, We're Not Turning Into Japan by James Ledbetter

Pressed to Act, Bank of Japan Sees Few Ways to Lift Demand by Hiroko Tabuchi