Sun, Oct 4, 2015
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

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. Opalesque Exclusive: IRAs represent billions of untapped capital for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Retirement accounts might not be the first source that comes to mind for those looking to raise funds, but they may represent billions of untapped capital. Unlike traditional retirement accounts,

  2. Opalesque TV: One way to access market hedge funds in the EU under the AIFMD radar[more]

    Benedicte Gravrand, Opalesque Geneva: While the Cayman Islands, the US and Hong Kong await the pan-European marketing passport to be extended to alternative investment fund

  3. Performance - Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September, Risky strategy sinks small hedge fund[more]

    Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September From Billionaire stock pickers David Einhorn, Daniel Loeb and Barry Rosenstein on Wednesday told their wealthy investors they lost money in September as market turmoil inflicted more pain on some of America'

  4. Comment - Cash and hedge funds are king[more]

    From For years we've argued that, given heightened uncertainty, a preferred portfolio posture is to barbell between cash allocations, which provide valuation optionality and mitigate unanticipated shocks, and long-short equities hedge funds that reduce "beta", or index risks, while leaving

  5. Europe - Russia has been gold for hedge funds this year[more]

    From Judging by the headlines, Russia may look like a nation in turmoil. Investors, though, don't seem to mind. In fact, for hedge funds, Russia has been one of the biggest and best stories of 2015, turning in the only positive performance among all emerging market strategies and crushing