Interesting speech, i am sure some people have read it before, but as i was reading it the passage about Japan caught my attention. Here are couple of statements from this passage
“..First, as you know, Japan’s economy faces some significant barriers to growth besides deflation, including massive financial problems in the banking and corporate sectors and a large overhang of government debt…” “…Fortunately, the U.S. economy does not share these problems, at least not to anything like the same degree, suggesting that anti-deflationary monetary and fiscal policies would be more potent here than they have been in Japan….”
“….Second, and more important, I believe that, when all is said and done, the failure to end deflation in Japan does not necessarily reflect any technical infeasibility of achieving that goal. Rather, it is a byproduct of a longstanding political debate about how best to address Japan’s overall economic problems”….
“….In the resulting political deadlock, strong policy actions are discouraged, and cooperation among policymakers is difficult to achieve….”
Remember, this was 2002 speech… interesting to see how dramatically situation changed since then