Wed, Feb 10, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The Big Picture: Many negative reactions to Japan’s unprecedented monetary stimulus

Friday, April 12, 2013

amb
Haruhiko Kuroda
An Opalesque column for global macro investors.

Benedicte Gravrand, Opalesque Geneva:

Japanese Prime Minister Shinzo Abe, a liberal democrat, came back to power in December 2012, and his country has been making waves in the financial markets ever since. He put forward a plan to weaken the currency, boost the country’s economy, and to reach a 2% inflation level within two years through "bold" monetary policy and flexible fiscal policy. Monetary stimulus is the first part of this economic recovery plan. The fiscal stimulus plan will be revealed later this year.

On 4th April, the Bank of Japan’s policy board, headed by new Governor Haruhiko Kuroda, approved its economic programme to launch massive monetary stimulus (double the monetary base, unify and expand all bond-buying schemes and aim for an inflation rate of 2% year on year). The bank will boost its buying of Japanese government bonds by 50 trillion yen ($520bn) per year and plans to buy 30 billion yen ($323m) of Japanese real estate investment trusts and one trillion yen ($10.5 bn) of exchange traded funds annually, according to Forbes. Total expansion of the monetary base will be about 10% of Japan’s gross GDP – whereas the Fed’s $85bn monthly purchase of treasuries and mortgages securities amount to 6.8% of the $15.1tln U.S. gross GDP.

(Note that ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time

  2. Investing - Hedge funds bet on risks in U.S. blue-chip debt, Hedge funds bets against bank credit risk paying off, Tiger Global still likes Internet names, gets pointers from Jeter[more]

    Hedge funds bet on risks in U.S. blue-chip debt From WSJ.com: Hedge funds are betting the next bond sector to crack will be the $4.5 trillion market for the safest U.S. corporate debt. New York’s Perry Capital has placed a $1 billion wager against investment-grade bonds issued by 10 comp

  3. Short Selling - Hedge fund manager Kyle Bass is shorting real estate—again, Top US hedge fund has €80m short position in Paddy Power Betfair[more]

    Hedge fund manager Kyle Bass is shorting real estate—again From Fortune.com: He also predicted the mortgage crisis in 2008. Hedge fund manager Kyle Bass, who runs Dallas-based Hayman Capital, tanked the stock of a little-known real estate financier Friday by revealing that he is shorting

  4. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  5. Opalesque Exclusive: Directors want to be considered trusted partners by new manager[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A hedge fund director provides her perspective on emerging hedge fund managers. She will happily work with those who have set themselves up for future growth, s