06-23-2013, 11:40 AM
Well, the interesting experiment in Japan is continuing with some notable successes. GDP growth is up, prices seem to have stopped falling and are creeping up a little, this isn't surprising considering the acceleration in growth and the fall of the yen. There are some other things that are more problematic though:
- Some policy discord in the BoJ, although these are about future projections of inflation and therefore not terribly serious. However, considering the forces the BoJ faces (the volatility in the JGB market), the more united they are (or perceived to be), the better.
- Wild swings in stocks, currency, and bonds are in some way a measure of the BoJ discord.
- Disappointing program of the third arrow, structural reforms. But perhaps more will be forthcoming after the elections.
I would say, so far, so good, but the BoJ has to clean up it's act.
- Some policy discord in the BoJ, although these are about future projections of inflation and therefore not terribly serious. However, considering the forces the BoJ faces (the volatility in the JGB market), the more united they are (or perceived to be), the better.
- Wild swings in stocks, currency, and bonds are in some way a measure of the BoJ discord.
- Disappointing program of the third arrow, structural reforms. But perhaps more will be forthcoming after the elections.
I would say, so far, so good, but the BoJ has to clean up it's act.