In the face of their new tricks the Bank of Japan’s economists quarrel winlinez

In the face of new tricks are the most economists the Bank of Japan’s fight U.S. stock market center: exclusive offer full industry sector stocks, premarket after hours, ETF, real-time quotes after the warrant of quantitative easing and negative interest rates failed to achieve the goal against austerity, Japan opened its new monetary instruments. Will it be useful? Local time on September 21, 2016, Tokyo, Japan, the Bank of Japan governor Kuroda Higashihiko held a press conference. Photograph: visual China in Wednesday’s meeting on interest rates, the Bank of Japan announced the policy rate unchanged at the level of -0.1%, while the scale of asset purchases unchanged; but it launched a new monetary policy framework, one of the major content is the introduction of inflation exceed the standard commitment, another is the most important change is the control of the yield curve. In this regard, economists and analysts have expressed different views: the former Federal Reserve Chairman Bernanke: overall good news in 21 published articles at the Brookings Institution, said the latest statement is the change of monetary framework, rather than monetary policy itself changes.   "although the Bank of Japan did not take significant easing, but overall I think this is a good news, because the statement promised again end austerity targets, and created a new framework for achieving that goal. As the central bank made it clear that the central bank could cut short-term interest rates or lower long-term government bond yields if policy easing became necessary in the future. Then it’s really crucial: Japan has made significant progress towards ending austerity, but progress has been dissipated if people have questioned the central bank’s commitment to the inflation target. If the central bank is to stifle market suspicions about the fight against inflation, the commitment to exceed inflation targets will be constructive." He says the most surprising and interesting part of the decision is the ten year old Japanese government bond. "Ten year Treasury yield curve as the goal, which is closely related to quantitative easing…… Targeting a long-term yield is equivalent to setting a target price, not a target quantity." "In general, there are some risks to long-term profitability," he continued. The main risk is that, in order to protect the target, the central bank has given up its balance sheet. In extreme cases, the central bank is trying to lower interest rates may find that most or even all eligible bonds are held by the central bank. If the target is not so easy to watch – for example, if the market is expected to be abolished in the near future – the risk will be particularly large, because the bond holders will produce a strong motivation to sell…… In Japan, these risks are likely to be manageable." "Economist": ready to fight for a long time, the economist commented that this is the Bank of Japan in the quantitative easing and negative interest rates failed to achieve the goal of combating deflation after the opening of the new monetary instruments. The article said, by promising to exceed inflation target, the Bank of Japan seems to want to raise concerns about the target of the central bank’s inflation expectations…… By maintaining a ten – year – old interest rate at current zero level, the Bank of Japan, the Central Bank of China, has been able to maintain its current interest rate at the current level of zero相关的主题文章: