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- Kuroda Negative Rate Bazooka Fizzles on Overnight Lending Freeze
- Asia's Rich Advised to Buy Yen as BOJ's Negative Rates Backfire
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- BOJ Negative Rates Risk Destroying Loan Market as Freeze Deepens
2016-07-09 — zerohedge.com
Japan, as well as America, is also a candidate for monetisation of infrastructure stimulus or for what Bernanke has called a "money-financed fiscal programme", or what has been called in other quarters "overt monetary financing". This is because Bank of Japan governor Haruhiko Kuroda is now looking for a new alternative form of monetary easing, given he has probably reached the practical limits of responsible JGB buying, as already discussed, while his initial move to impose negative rates in January led to the opposite market reaction than expected ...
Given the unattractive options of buying still more JGBs or ETFs, or risking an undoubtedly unpopular expansion of negative rates, Kuroda and indeed Abe will be looking for a new approach. Monetisation of infrastructure stimulus may be the option.
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