The economist slot on the Council on Economic and Fiscal Policy (CEFP) has shifted from Mana Nakazora (Vice Chairman of BNP Paribas Securities) to Toshihiro Nagahama (Chief Economist at Dai-ichi Life Research Institute). Furthermore, the academic slot has transitioned from Professor Noriyuki Yanagawa (University of Tokyo) to Professor Masazumi Wakatabe (Waseda University).
In the “Council for New Form of Capitalism Realization” led by former PM Kishida, the academic and economist slots were held by Professor Yanagawa and Yuri Okina (Chairperson of the Japan Research Institute), respectively. However, in the newly established “Japan Growth Strategy Council” under PM Takaichi, the academic slot has been removed in favor of two economist slots, filled by Takashi Aida (Chief Economist at Crédit Agricole Securities) and Takeo Kataoka (Chief Economist at PwC Consulting).
What magnificent news this is. Outlets like the Nikkei Shimbun, which long ago abandoned its stance as an economic forum to unilaterally flatter the fiscal discipline faction, must be in tears.
Mr. Nagahama and Mr. Aida are individuals who have spearheaded the argument for fiscal expansion while many other economists were obsessing over productivity. Unlike an armchair critic such as myself, they possess solid theoretical backbones and vast knowledge. They are more than capable of pushing back with sound logic whenever prominent “mainstream” economists from the fiscal discipline school spout nonsense.
Mr. Wakatabe (former BOJ Deputy Governor) and Mr. Kataoka (former BOJ Board Member) are even more well-known as leaders of the quantitative easing movement. While I am not privy to every detail of their specific arguments, they will undoubtedly advocate for fiscal expansion. It is my view that the logical conclusion of realizing that quantitative easing alone could not fully resuscitate the Japanese economy is that a final push through fiscal policy is necessary.
While these appointees may not be as “radical” in their fiscal expansionism as I am, this is undoubtedly a persuasive selection of talent. I want to believe that a once-in-a-century opportunity for the Japanese economy to escape its long-term stagnation has finally arrived.
Furthermore, I have long maintained that “business managers and management consultants are ill-suited for macroeconomic discussions.” From this perspective, I welcome the fact that the Chairperson of Keizai Doyukai (Japan Association of Corporate Executives) is not a member of either council (even if the reason was a muddle over personnel). While the former Chairman, Mr. Niinami, was somewhat moderate, his predecessors were almost exclusively rigid fiscal disciplinarians. Since the Chairman of Keidanren (Japan Business Federation) is already selected as a representative of big business, we should take this opportunity to stop inviting members from Doyukai altogether. Additionally, while I will refrain from mentioning names, several other prominent business figures who are unsuited for macroeconomic debate have been dropped from the selection. This is a desirable outcome.
To be fair, there are several corporate managers who emphasize growth. For instance, looking at the remarks of Chairman Kobayashi of the Japan Chamber of Commerce and Industry (JCCI), I believe he takes a very growth-oriented stance. Inviting individuals like him is an excellent move.
The remaining problem is the Government Tax Commission; looking at the current members is appalling. One could consider inserting fiscal expansionist economists whose names haven’t appeared yet, but I doubt a minor reshuffle will suffice. Perhaps it should simply be abolished for the time being.
Finally, I highly recommend the YouTube program News no Soten (Points of Contention), where Takashi Aida frequently appears. Every episode featuring him is superb.
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