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?

{{content.question}}

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa
Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles