Financial Times FT.com

Why Mrs Watanabe is going to keep her purse shut

By Takashi Ito

Published: April 17 2007 03:00 | Last updated: April 17 2007 03:00

From Mr Takashi Ito.

Sir, I have enjoyed the various views expressed in your newspaper regarding Japanese interest rates (Letters, April 12, 13 and 16). I would like to focus on one of the main points of contention, namely, the impact on consumption. Basically, would Mrs Watanabe spend more money if she earned more interest income, or would she actually save more (allocate more to cash)?

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