Mon, Jun 26, 2017
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. FinTech - Rise of robots: Inside the world's fastest growing hedge funds[more]

    From Bloomberg.com: Believe the hype. Quants have never been more popular. After doubling over the past decade, assets run by so-called systematic funds have hit a record $500 billion this year, according to estimates from Barclays Plc. In some ways, their meteoric rise is due to the same technolog

  2. Legal - Bond market concerns could scuttle Paulson's Fannie-Freddie plan[more]

    From Bloomberg.com: A hedge fund proposal for freeing Fannie Mae and Freddie Mac from U.S. control is poised to face stiff opposition from investors who say it risks wrecking the mortgage-bond market. The Moelis & Co. blueprint, which firms including Paulson & Co. and Blackstone Group LP sponsored,

  3. Other Voices: Are your pricing policies and procedures for less liquid instruments adequate?[more]

    Komfie Manalo, Opalesque Asia: The unrelated position mismarking incidents that quickly precipitated the closures of both Visium Asset Management and Marinus Capital have been recent focal points for market participants, but regulatory scrutiny of valuation choices for less liquid instruments is

  4. FinTech - AI hedge fund Numerai now live on Ethereum, Cryptocurrency hedge funds generate huge returns as bitcoin surges[more]

    AI hedge fund Numerai now live on Ethereum From Cryptoninjas.net: Back in February, Numerai announced numeraire (NMR), a cryptographic token to incentivize a new kind of hedge fund built by a network of data scientists. Earlier today, the Numeraire smart contract was officially deployed

  5. Investing - Advisors slash hedge fund positions, Theravance Biopharma is a top pick of investment guru Seth Klarman, As asset management industry grows a search for new revenue streams[more]

    Advisors slash hedge fund positions From Barrons.com: Financial advisors have cut wealthy clients' exposure to hedge funds by up to one third over the past 12 months, The Financial Times reports. Advisor firms in the FT's annual top-300 ranking have reduced their hedge fund allocation to