A new policy proposal to combat domestic deflation

Comments on Volz Ulrich “What Japan needs to do to end deflation”, 30/06/2010, http://www.eastasiaforum.org/2010/06/30/what-japan-needs-to-do-to-end-deflation/
We can all be more creative and try something new, as opposed to try the failed old tricks.

Speaking of non-conventional measures, why aren't economists more creative and bold in both domestic macroeconomic policy and international policy using a new kind of international monetary instrument to resolve domestic deflation problem existing in countries like Japan?

Just consider what the US has been doing, it is not too difficult for one to consider a policy from a deflationary country like Japan to lend to other countries specifically for them to buy Japanese goods and services with more favourable interest rates, as long as those lendings can be secured with very low risks.

Risks can be managed and minimised by sovereign guarantee or other secured guarantee.

If Japan is in a deflationary cycle, then it can stimulate other countries to provide sufficient demand for it and in turn stimulate its own production and demand in the process.

That is probably better than using and changing exchange rate.