Richard Koo

Richard Koo is a Japanese economist known for his work on the concept of a "balance sheet recession." This refers to a situation where companies and individuals focus on paying down debt rather than spending or investing, leading to prolonged economic stagnation. Koo argues that during such times, traditional monetary policy may not be effective, as lowering interest rates won’t encourage borrowing. Instead, he advocates for government intervention through fiscal stimulus to boost demand and stabilize the economy. His insights have been particularly influential in understanding Japan's economic challenges since the 1990s and beyond.