Can Abenomics revive Japan’s economy?

Japan has become a testing ground for economic theories about how to revive a flagging economy through large-scale central bank and government stimulus. Quantitative and qualitative monetary easing (QQE) programme launched by the BoJ has been done at a scale not seen elsewhere in the world to date, with government bond purchases increased from ¥50 trillion a month to ¥80 trillion since 2013 (or around 1% of GDP). After years of stagnation, the Japanese economy is beginning to show signs of life. Yet its impact on headline inflation expectations in the country has so far been muted. Where Abenomics has had an impact is on the cost of capital, with interest rates in Japan falling significantly in response to the brute force purchases by the central bank. However, this has not led to a significant pick-up in bank lending to the real economy. To read the full article (VIEW LINK)


MORE ON



3 topics

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.