As New York Times columnist Paul Krugman recently reminded readers, the dirtiest word an economist can call you is "Japanese."
Swedes must be stewing with regret for giving Krugman that Nobel Prize, after one of his columns likened the trajectory of Scandinavia's biggest economy to Tokyo's battle with deflation: "The rock star of the recovery has turned itself into Japan," declared Krugman. Recriminations are flying. Sweden's deputy central bank governor, Per Jansson, called the analysis "rather crude."
Regardless, Krugman hurled his zinger at an ideal moment, just as Shinzo Abe and Barack Obama are in danger of ignoring the same lessons that Sweden is. When the two leaders met in Tokyo last week, much of the talk focused on security, including North Korea's nuclear program and territorial disputes with China. Far more important is the challenge of returning the Japanese and U.S. economies to health.