Fri, Sep 30, 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. Studies - Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements, Cambridge: Look to private investments for best access to LatAm growth[more]

    Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements A new study of the hedge fund space by industry law firm Seward & Kissel LLP reveals a wealth of information regarding established hedge fund managers’ use of side letters—special agreements

  2. Activist News - Caesars 'optimistic' on deal with hedge fund creditors[more]

    From Reuters.com: Caesars Entertainment Corp said on Monday it remains "optimistic" of reaching a $5 billion deal with the bulk of its creditors to push its main operating unit out of bankruptcy, but one hedge fund bondholder said it will pursue litigation. Caesars offered a sweetened $5 billion set

  3. Hedge funds recover from losses as central banks give markets a respite[more]

    Komfie Manalo, Opalesque Asia: The Lyxor Hedge Fund index was up 0.4% from the week ending September 20 (-2.4% YTD), supported by the willingness of central banks to remain accommodative, Lyxor Asset Management said in its weekly briefing. It ad

  4. Perry Capital closing flagship fund after almost three decades[more]

    From Blooomberg.com: Richard Perry, one of the biggest names in hedge funds, is calling it quits after 28 years. Perry, 61, is winding down his New York-based flagship fund as the industry confronts one of the most tumultuous periods in its history. In a letter to investors Monday, he said his style

  5. Eden Rock buys Gottex stake in ERG Asset Management[more]

    Matthias Knab, Opalesque: Eden Rock Group announced the purchase of Gottex’s stake in ERG Asset Management and so the firm is now wholly owned by Eden Rock. The two firms established the joint venture in 2011 to focus on providing cost effective solutions to funds holding illiquid investments, as