Category Archives: BUSINESS

Macroeconomic stabilization in the digital age: What should policy makers be aware of?

Macroeconomic stabilization in the digital age: What should policy makers be aware of?

The rise of the digital age has created challenges for policy makers around the globe in managing their economies. Early work on this issue by Cecchetti (2002) noted that macroeconomic management becomes more complex in an environment of digitalization given shifting trend productivity and difficulties in estimating potential output. For emerging economies, these policy challenges have been exacerbated by the emergence of the digital finance revolution in the aftermath of the global financial crisis (GFC), i.e., when many emerging market economies were experiencing large and volatile capital flows. Innovations related to payments systems, maturity transformation, and the allocation of capital can hinder macroeconomic stabilization to the extent that they disrupt the efficacy of policy tools used to manage the economy. This article provides an overview of the main issues facing policy makers in the digital age, which was also the topic of a recent ADBI-SKBI/SMU conference which brought together leading experts from academia, international organizations, think tanks and central banks.1 It discusses the following key areas: (1) the growth of digital finance and implications for systemic risk; (2) the changing landscape regarding capital flow developments in the digital age; and (3) new challenges faced by central banks and financial supervisors.

First, advances in digital finance have led to a shift in financial intermediation away from traditional banks, with large technology firms increasingly providing financial services over the past decade. In addition, the involvement of so-called non-banks in liquidity transformation and leveraged lending creates financial vulnerabilities at the systemic level, and opportunities for regulatory arbitrage (Bank for International Settlements, 2019). These vulnerabilities are amplified given the interconnectedness of non-banks with the traditional banking sector. As well as this, competition from the traditional banking sector for deposits and funding may lead to excessive risk-taking. Therefore, while the ongoing diffusion of digital finance into …continue reading

    

The difficulty in selling a house with 1,000+ owners

With over 1000 owners, some heirs to a traditional townhouse in Kyoto have found themselves unable to sell.

According to the property title, the home had 202 owners recorded as of 1919. That number has likely swelled to over 1,000. Some of the heirs want to dispose of the property, but selling real estate in Japan requires agreement from 100% of the owners. In this situation, this means getting permission from all 1,000 owners.

The 100 sqm house had been purchased various members of the local youth association in 1919. The current title registration document is over 22 pages, listing the numerous owners. The title has not been updated, leaving heirs and current owners’ addresses unknown.

After WWII, the house had been maintained by some of the youth association heirs and rented out to tenants. The last tenant left in 2018, with some heirs deciding to sell the now-vacant property. They consulted with a lawyer who said it would be impossible to identify and track down all current owners to obtain their signed permission to sell the property. Kyoto City officials also remarked that this is a highly unusual situation with no precedent.

So why did this house have 202 owners to begin with? Local researchers suggest it may have been due to voting rights in those days which were only given to qualified taxpayers. The timing coincides with the Taisho Democracy suffrage movement.

Source: The Kyoto Shimbun, December 22, 2019.

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The Nissan Mess: The Unusual Suspects

Carlos Ghosn, the former chairman of Nissan, now a fugitive, will make his first public appearance on Wednesday, several days after his dramatic escape from Japan. He was scheduled to be tried for alleged financial misconduct….in 2021. (He was arrested in 2018 and detained for 128 days)

After being muzzled for months by Japan’s prosecutors, under a Damocles sword that if he held a press conference, he would be re-arrested and thrown into “the pig-box” (detention cells/jail), Carlos Ghosn will tell all tonight.

Ironically, the Japanese media, which has except for a few periodicals, kept leaking information from Nissan and the prosecutors without scrutiny, has been shut out of the press conference.

According to Fox Business News:

Carlos Ghosn told FOX Business’ Maria Bartiromo this weekend that he has “actual evidence” and documents that will prove that this was a coup to take him down.

Ghosn told Bartiromo that at a press conference this week he plans to name names, including some people behind the Japanese government which he believes, are behind his 2018 arrest over financial misconduct allegations. Ghosn believes “they wanted to take him out” because he was going to merge with Nissan and Renault.

The big questions: who are the suspects, who will be on the J’Accuse list?

Based on talks with Carlos Ghosn, his lawyers and former Nissan and Renault executives here is my list of the unusual suspects .

Yoshihide Suga (Cabinet Spokesman)

菅義偉官房長官

Hari Nada (Nissan executive who made a plea bargain with prosecutors)

ハリ・ナダ氏

Hitoshi Kawaguchi (Nissan executive and close friend of Suga)

川口均氏

Akihide Kumada (former special prosecutor, Prime Minister Abe’s pet lawyer)

熊田彰英氏(ヤメ検)

Toshiaki Ohnuma (Nissan executive who allegedly made a plea bargain with prosecutors)

大沼敏明氏

Masukazu Toyoda (former METI official who seems to have been put on Nissan board just in time to plot Ghosn’s downfall. Nissan spy?)

豊田正和氏

Phillippe Klein (Renault) …continue reading

    

Okinawa’s housing starts drop for first time in 5 years

Housing starts in Okinawa in 2019 are likely to see the first decline in five years. Total starts between January and November 2019 dropped 9.4% from the same period in 2018 to 13,854 units. The biggest drop was seen in rental housing.

According to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), total rental housing starts as of the end of November were down 18.6% from the same period in 2018. Rental housing comprised two-thirds of total housing starts in 2019.

Rising construction costs have contributed to lower expected rental returns, while the Suruga Bank investment loan scandal has caused many banks to tighten lending on investment properties.

Owner-occupier housing starts had increased by 10.5% to 2,691 units, while condo-style apartments increased by 17.2% to 2,602 units.

Source: The Ryukyu Shimpo, December 31, 2019.

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Happy New Year! Here’s to 2020!

Happy New Year to all the users and visitors to Japankuru Funding!

As we now move into our 3rd year of operation after starting in February 2018, we hope that this new year and new decade brings good things for all of you and we hope that this will also be an amazing start for all the projects that are on or will be on the site in the near future!

We hope we can count on your continued support!!

Thank you!!

Happy New Year!!!

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