QE is no silver bullet for Japan's economy

It's unclear whether the Bank of Japan's stimulus program will end deflation or boost growth, but there's a bigger problem that is unlikely to be solved by monetary policy.

‘Shock and awe’ is not a phrase commonly attributed to decisions made by central banks, but last month the Bank of Japan genuinely earned that label when it announced a plan to increase its annual purchases of government debt by 60 per cent.

This was quantitative easing on a level never before attempted. Was BoJ governor Haruhiko Kuroda a genius, or had he lost his mind?

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