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Gov't nominates reflationist-minded economist to join BOJ board

4 Comments
By Tetsushi Kajimoto and Yoshifumi Takemoto

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4 Comments
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Adachi said the BOJ should buy foreign bonds or accelerate the pace of its purchases of exchange-traded funds (ETF) to prop up inflation. He was against deepening negative interest rates.

Not so bad then. If the BOJ has loads of foreign bonds when the Japanese currency has crashed, the BOJ will be able to bail out Japan!

On the other hand, if the BOJ buys foreign bonds and the foreigners go crazy and bankrupt themselves first selling debt to Japan, it could be Bad for everyone.

Fingers crossed for the best!

It does not buy foreign bonds on the view doing so would infringe upon the Ministry of Finance’s jurisdiction on currency policy.

But just say it's done for the purpose of hitting the inflation target, trivial matters like that haven't stopped the BOJ from bankrolling the Japanese government, why not bankroll the entire developed world?

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We will be watching.

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"It also buys...risky assets such as ETFs as part of efforts to funnel money to the economy."

I wonder who exactly it buys the ETFs from. The common assumption is this is done to prop up the stock market.

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Inflation never benefits the average person. Wages never keep up.

Inflation should happen naturally and should be wage driven not supply side driven.

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