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© (c) Copyright Thomson Reuters 2018.Japanese firms see no BOJ tightening until 2019 or beyond 2020: poll
By Tetsushi Kajimoto TOKYO©2024 GPlusMedia Inc.
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fxgai
Central bankers have no power to spur economic growth. Economic growth is people producing more stuff than before. Monetary ease doesn't achieve that.
It's not a true "taper", as they have simply bought so much of government debt that they now can only buy as much as is newly issued - they hit the limit. This is the 35-40 trillion of new debt issuance each year, down from their original (unsustainable) target of 80 trillion.
And whatever the amount of purchases, the main effect was covert financing of the government's deficit spending - not higher economic growth nor the (unwanted) goal of 2% annual reduction in consumer purchasing power ("inflation").
That's probably right. I believe companies (like me) want to see true economic reforms to boost growth potential, not government deficit financing.
That much is probably just supposition. It's a poll about what they expect the BOJ to do, not what they want it to do.
Oh gawd. If you are going to talk yourself into indebting yourself further, there is little point to hiking the tax rate in the first place. There will be a consumption boom before the consumption tax rate hike and a bust after it. That's the way it is in Japan. Take the good with the bad, not just focus on the bad.