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Europe Is Closely Studying Lessons From Japan

Europe Is Closely Studying Lessons From Japan

They Fear Euro Zone Is Falling Into Similar Lethargy

MARCUS WALKER

Updated June 29, 2014 7:45 p.m. ET

BERLIN—If Europe is tilting toward becoming the next Japan, does that mean it needs its own version of Abenomics?

Japanese Prime Minister Shinzo Abe’s announcement last week of fresh measures to improve sluggish growth coincides with an intensified debate in Europe about whether the euro zone is sliding into similar long-term lethargy.

The euro zone’s stuttering recovery and rising dependence on spending elsewhere are a worry for global growth. The 18-country currency bloc, with its $13 trillion economy, is too big to be a passenger without weighing others down, too.

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But how meaningful is the comparison with Japan, which has managed barely 1% annual growth for the past two decades, and how similar are the problems and potential cures? Japan famously fell into a self-perpetuating deflation in the 1990s, with falling prices leading consumers and business to delay spending, thus keeping growth weak.

Read more at http://online.wsj.com/articles/calls-mount-for-europe-to-adopt-abenomics-1404062899

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About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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