abstract:Monetary overhang is a phenomenon where people have money holdings due to the lack of ability to spend them. This is a phenomenon often present with repressed inflation and was a common occurrence in the Soviet Union.
Pessimists pointtoJapan'stravailsasalesson in howa deflatingasset-pricebubbleand a vastoverhangofdebtcandefeatall that monetary and fiscalpolicy can throw at it.