Daily Archives: December 11, 2013

Both the UK and Japan would like to see sustained economic recoveries but, until recently, the recoveries they craved were fundamentally different in nature. The UK ideally wanted an export-led recovery supported by plenty of productive investment. The financial crisis provided the perfect opportunity to wean the UK off the housing-led, debt-financed consumer booms of old. Japan, meanwhile, hoped to see a shift towards a consumer-led recovery, helped along by an end to the deflationary curse which had persuaded the Japanese to hoard cash and repay debt.

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