Tag: Inflation

The Bank of Japan Can’t Jump-Start Inflation #buy #a #business


#business week

#

The Bank of Japan Can’t Jump-Start Inflation

On May 29 the Japanese government announced that the country’s consumer prices were unchanged in April from a year earlier, calling into question the power of the central bank’s effort to drive prices upward. The BOJ is acting a bit like a hedge fund, trying any investment to achieve its goal of raising inflation to 2 percent. It’s snapping up not only government bonds but also exchange traded funds, corporate bonds, real estate investment trusts, and venture capital loans—anything to put more money into lenders’ and investors’ hands so they can lend and invest more. “The BOJ deserves the most aggressive award among central banks,” says Yasuhiro Takahashi, a senior economist at Nomura Securities.

The latest consumer price report underscores the difficulty of the central bank’s task. BOJ Governor Haruhiko Kuroda doubled down last October and expanded his policy, formally known as quantitative and qualitative monetary easing. The central bank pledged to raise the monetary base from 60 trillion yen ($482 billion) a year to 80 trillion yen to give banks more money to lend.

The heroic effort has driven the Nikkei 225 Stock Average to a 15-year high and the yen down to almost a 12-year low against the dollar. Although that’s delighted stock investors and big exporters such as Toyota Motor and Shiseido, it hasn’t moved the needle on overall growth or inflation. A majority of 36 economists surveyed by Bloomberg see the BOJ beefing up its program by late October, when it’s expected to update its inflation forecast. If that’s less than 2 percent, the bank will pile on extra stimulus.

Nomura predicts the central bank will switch its focus from bonds to stock purchases next spring, betting a bull market might more effectively stimulate consumer spending. The brokerage sees the BOJ doubling its ETF purchases, to 6 trillion yen, while announcing plans to taper its bond purchases.

Kuroda has said that the plunge in oil prices in the short term delayed progress on generating inflation and that rising wages will engender growth, consumer spending, and higher prices. “It’s really too early to say Kuroda’s easing didn’t work,” says Takahiro Sekido, a former BOJ official who’s now a strategist at Bank of Tokyo-Mitsubishi UFJ.

Japan faces structural challenges, given its aging, shrinking population and its debt burden, the biggest in the developed world. “The BOJ’s policy has been and must be more ambitious,” says former Fed Vice Chairman Donald Kohn, now at the Brookings Institution. “It’s not going to be easy to break expectations [of deflation] that have been entrenched over the decades.”

Fiscal conservatives question the BOJ’s bond-buying, which soaks up about 90 percent of all new government bonds issued to keep long-term rates low. If long-term rates returned to their historical average of 3 percent, from 0.4 percent now, the higher interest payments would push the budget deficit from 8.5 percent to 13 percent of gross domestic product, according to the Organisation of Economic Co-operation and Development. “The BOJ is approaching its limit in bond purchases,” says Nomura’s Takahashi.

Kuroda continues to enjoy the steadfast support of Prime Minister Shinzo Abe, who picked him to run the BOJ in 2013. Abe, though, has so far failed to deliver on the promised labor, tax, and regulatory reforms that economists say are needed to get Japan back on track. Monetary firepower alone won’t revitalize the economy.

The bottom line: If long-term rates return to a more normal 3 percent, Japan’s budget deficit could rise to 13 percent of GDP.

Before it’s here, it’s on the Bloomberg Terminal. LEARN MORE


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The Bank of Japan Can’t Jump-Start Inflation #business #school #ranking


#business week

#

The Bank of Japan Can’t Jump-Start Inflation

On May 29 the Japanese government announced that the country’s consumer prices were unchanged in April from a year earlier, calling into question the power of the central bank’s effort to drive prices upward. The BOJ is acting a bit like a hedge fund, trying any investment to achieve its goal of raising inflation to 2 percent. It’s snapping up not only government bonds but also exchange traded funds, corporate bonds, real estate investment trusts, and venture capital loans—anything to put more money into lenders’ and investors’ hands so they can lend and invest more. “The BOJ deserves the most aggressive award among central banks,” says Yasuhiro Takahashi, a senior economist at Nomura Securities.

The latest consumer price report underscores the difficulty of the central bank’s task. BOJ Governor Haruhiko Kuroda doubled down last October and expanded his policy, formally known as quantitative and qualitative monetary easing. The central bank pledged to raise the monetary base from 60 trillion yen ($482 billion) a year to 80 trillion yen to give banks more money to lend.

The heroic effort has driven the Nikkei 225 Stock Average to a 15-year high and the yen down to almost a 12-year low against the dollar. Although that’s delighted stock investors and big exporters such as Toyota Motor and Shiseido, it hasn’t moved the needle on overall growth or inflation. A majority of 36 economists surveyed by Bloomberg see the BOJ beefing up its program by late October, when it’s expected to update its inflation forecast. If that’s less than 2 percent, the bank will pile on extra stimulus.

Nomura predicts the central bank will switch its focus from bonds to stock purchases next spring, betting a bull market might more effectively stimulate consumer spending. The brokerage sees the BOJ doubling its ETF purchases, to 6 trillion yen, while announcing plans to taper its bond purchases.

Kuroda has said that the plunge in oil prices in the short term delayed progress on generating inflation and that rising wages will engender growth, consumer spending, and higher prices. “It’s really too early to say Kuroda’s easing didn’t work,” says Takahiro Sekido, a former BOJ official who’s now a strategist at Bank of Tokyo-Mitsubishi UFJ.

Japan faces structural challenges, given its aging, shrinking population and its debt burden, the biggest in the developed world. “The BOJ’s policy has been and must be more ambitious,” says former Fed Vice Chairman Donald Kohn, now at the Brookings Institution. “It’s not going to be easy to break expectations [of deflation] that have been entrenched over the decades.”

Fiscal conservatives question the BOJ’s bond-buying, which soaks up about 90 percent of all new government bonds issued to keep long-term rates low. If long-term rates returned to their historical average of 3 percent, from 0.4 percent now, the higher interest payments would push the budget deficit from 8.5 percent to 13 percent of gross domestic product, according to the Organisation of Economic Co-operation and Development. “The BOJ is approaching its limit in bond purchases,” says Nomura’s Takahashi.

Kuroda continues to enjoy the steadfast support of Prime Minister Shinzo Abe, who picked him to run the BOJ in 2013. Abe, though, has so far failed to deliver on the promised labor, tax, and regulatory reforms that economists say are needed to get Japan back on track. Monetary firepower alone won’t revitalize the economy.

The bottom line: If long-term rates return to a more normal 3 percent, Japan’s budget deficit could rise to 13 percent of GDP.

Before it’s here, it’s on the Bloomberg Terminal. LEARN MORE


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The Bank of Japan Can’t Jump-Start Inflation #business #partners


#business week

#

The Bank of Japan Can’t Jump-Start Inflation

On May 29 the Japanese government announced that the country’s consumer prices were unchanged in April from a year earlier, calling into question the power of the central bank’s effort to drive prices upward. The BOJ is acting a bit like a hedge fund, trying any investment to achieve its goal of raising inflation to 2 percent. It’s snapping up not only government bonds but also exchange traded funds, corporate bonds, real estate investment trusts, and venture capital loans—anything to put more money into lenders’ and investors’ hands so they can lend and invest more. “The BOJ deserves the most aggressive award among central banks,” says Yasuhiro Takahashi, a senior economist at Nomura Securities.

The latest consumer price report underscores the difficulty of the central bank’s task. BOJ Governor Haruhiko Kuroda doubled down last October and expanded his policy, formally known as quantitative and qualitative monetary easing. The central bank pledged to raise the monetary base from 60 trillion yen ($482 billion) a year to 80 trillion yen to give banks more money to lend.

The heroic effort has driven the Nikkei 225 Stock Average to a 15-year high and the yen down to almost a 12-year low against the dollar. Although that’s delighted stock investors and big exporters such as Toyota Motor and Shiseido, it hasn’t moved the needle on overall growth or inflation. A majority of 36 economists surveyed by Bloomberg see the BOJ beefing up its program by late October, when it’s expected to update its inflation forecast. If that’s less than 2 percent, the bank will pile on extra stimulus.

Nomura predicts the central bank will switch its focus from bonds to stock purchases next spring, betting a bull market might more effectively stimulate consumer spending. The brokerage sees the BOJ doubling its ETF purchases, to 6 trillion yen, while announcing plans to taper its bond purchases.

Kuroda has said that the plunge in oil prices in the short term delayed progress on generating inflation and that rising wages will engender growth, consumer spending, and higher prices. “It’s really too early to say Kuroda’s easing didn’t work,” says Takahiro Sekido, a former BOJ official who’s now a strategist at Bank of Tokyo-Mitsubishi UFJ.

Japan faces structural challenges, given its aging, shrinking population and its debt burden, the biggest in the developed world. “The BOJ’s policy has been and must be more ambitious,” says former Fed Vice Chairman Donald Kohn, now at the Brookings Institution. “It’s not going to be easy to break expectations [of deflation] that have been entrenched over the decades.”

Fiscal conservatives question the BOJ’s bond-buying, which soaks up about 90 percent of all new government bonds issued to keep long-term rates low. If long-term rates returned to their historical average of 3 percent, from 0.4 percent now, the higher interest payments would push the budget deficit from 8.5 percent to 13 percent of gross domestic product, according to the Organisation of Economic Co-operation and Development. “The BOJ is approaching its limit in bond purchases,” says Nomura’s Takahashi.

Kuroda continues to enjoy the steadfast support of Prime Minister Shinzo Abe, who picked him to run the BOJ in 2013. Abe, though, has so far failed to deliver on the promised labor, tax, and regulatory reforms that economists say are needed to get Japan back on track. Monetary firepower alone won’t revitalize the economy.

The bottom line: If long-term rates return to a more normal 3 percent, Japan’s budget deficit could rise to 13 percent of GDP.

Before it’s here, it’s on the Bloomberg Terminal. LEARN MORE


Tags : , , , , , ,

The Bank of Japan Can’t Jump-Start Inflation #financing #for #business


#business week

#

The Bank of Japan Can’t Jump-Start Inflation

On May 29 the Japanese government announced that the country’s consumer prices were unchanged in April from a year earlier, calling into question the power of the central bank’s effort to drive prices upward. The BOJ is acting a bit like a hedge fund, trying any investment to achieve its goal of raising inflation to 2 percent. It’s snapping up not only government bonds but also exchange traded funds, corporate bonds, real estate investment trusts, and venture capital loans—anything to put more money into lenders’ and investors’ hands so they can lend and invest more. “The BOJ deserves the most aggressive award among central banks,” says Yasuhiro Takahashi, a senior economist at Nomura Securities.

The latest consumer price report underscores the difficulty of the central bank’s task. BOJ Governor Haruhiko Kuroda doubled down last October and expanded his policy, formally known as quantitative and qualitative monetary easing. The central bank pledged to raise the monetary base from 60 trillion yen ($482 billion) a year to 80 trillion yen to give banks more money to lend.

The heroic effort has driven the Nikkei 225 Stock Average to a 15-year high and the yen down to almost a 12-year low against the dollar. Although that’s delighted stock investors and big exporters such as Toyota Motor and Shiseido, it hasn’t moved the needle on overall growth or inflation. A majority of 36 economists surveyed by Bloomberg see the BOJ beefing up its program by late October, when it’s expected to update its inflation forecast. If that’s less than 2 percent, the bank will pile on extra stimulus.

Nomura predicts the central bank will switch its focus from bonds to stock purchases next spring, betting a bull market might more effectively stimulate consumer spending. The brokerage sees the BOJ doubling its ETF purchases, to 6 trillion yen, while announcing plans to taper its bond purchases.

Kuroda has said that the plunge in oil prices in the short term delayed progress on generating inflation and that rising wages will engender growth, consumer spending, and higher prices. “It’s really too early to say Kuroda’s easing didn’t work,” says Takahiro Sekido, a former BOJ official who’s now a strategist at Bank of Tokyo-Mitsubishi UFJ.

Japan faces structural challenges, given its aging, shrinking population and its debt burden, the biggest in the developed world. “The BOJ’s policy has been and must be more ambitious,” says former Fed Vice Chairman Donald Kohn, now at the Brookings Institution. “It’s not going to be easy to break expectations [of deflation] that have been entrenched over the decades.”

Fiscal conservatives question the BOJ’s bond-buying, which soaks up about 90 percent of all new government bonds issued to keep long-term rates low. If long-term rates returned to their historical average of 3 percent, from 0.4 percent now, the higher interest payments would push the budget deficit from 8.5 percent to 13 percent of gross domestic product, according to the Organisation of Economic Co-operation and Development. “The BOJ is approaching its limit in bond purchases,” says Nomura’s Takahashi.

Kuroda continues to enjoy the steadfast support of Prime Minister Shinzo Abe, who picked him to run the BOJ in 2013. Abe, though, has so far failed to deliver on the promised labor, tax, and regulatory reforms that economists say are needed to get Japan back on track. Monetary firepower alone won’t revitalize the economy.

The bottom line: If long-term rates return to a more normal 3 percent, Japan’s budget deficit could rise to 13 percent of GDP.

Before it’s here, it’s on the Bloomberg Terminal. LEARN MORE


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Top 10 Portable Air Compressor for Car Reviews #air #compressor, #car #air #compressor, #portable

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Это видео недоступно.

Top 10 Portable Air Compressor for Car Reviews

Опубликовано: 23 июн. 2013 г.

Durable, fast and quiet Top 10 Best Portable Air Compressor for Car Reviews 2015

Get the latest updates on portable air compressor for cars and trucks price info and reviews:

#1 VIAIR 85P Portable Air Compressor B0036E9VB6

• It is really fast, quiet, and the build quality is very impressive.
• able to be powered by a cigarette lighter power socket
• almost twice as fast as the 70P and every bit as quiet
• No air loss
• Not heavy

#2 Viair 00073 70P Heavy Duty Portable Compressor B0012WHBSO

• Great quality
•Compact size
•Very quiet air compressor
•Fast and reliable
•Nice carrying bag available
•Ideal road side emergency kit
•powerful enough to inflate even sport tires
•super fast
•built quality is very good
•inflates other stuff (beach toys, sport equipment)

#3 Viair 00088 88P Portable Air Compressor B005ASY23I
• Very well built and quiet air compressor.
• Long enough power cord and hose easily connect to the rear tires.
• Best choice 88P portable air compressor.
• A must have for long distance travel.
• Minimum cool down time (approximately 5.5 minutes)
• Fills up to 33″ tires.
• 20 ft. maximum reach.

#4 LifeLine AAA 300 PSI 12 Volt DC Air Compressor B000SL4AA2

• It’s pretty load but it gets the job done.
• Affordable air compressor that works quite well.
• It takes around 5 minutes to pump auto tires from 31 to 35 psi.
• Excellent air compressor for occasional home use too.
• Compact and easy to store.
• Great lightweight air compressor.

#5 Campbell Hausfeld RP3200 12-Volt Inflator and Worklight B000642GAM

• This tire inflator works very well.
• The ability to set the air pressure you need and auto shutoff when it reaches your desired PSI.
• Ideal choice for variety of inflation jobs.
• Great safety product for car or truck
• Fast, easy inflation of tires and sporting equipment

#6 Slime 40022 12-Volt Digital Tire Inflator B002ZBWKAU

• Pre-set to desired pressure and let the inflator do the rest
• Works great for a quick fill for your tires.
• Gets the jobs done, affordable reasonable price, loud.
• 12 feet total reach
• Digital 12 volt inflator plugs directly into your cigarette lighter,15 Amp fuse required.

#7 VIAIR 90P Portable Compressor B001MXL71A

• 120 PSI maximum working pressure and 15% duty cycle
• 12-foot power cable with 30-amp inline fuse and 5foot inflation hose
• Definitely best choice air compressor 90P
• Filling performance/speed on par with gasoline station compressors
• Sturdy metal construction quick connect device
• Can work on tires up to 33″
• Light and well built
• Powerful and quiet

#8 Bon-Aire i8000 Goodyear 120-Volt Direct Drive Tire Inflator B003XGYDE2

• 120 volt direct drive inflator
• quiet and efficient operation
• Includes inflation adaptors for all sporting equipment and rafts
• plugs into any standard 120-volt wall outlet for power
• Inflates P185/R14 from 0 – 28 PSI in approximately 2 1/2 minutes or less
• Reasonable price multipurpose inflator
• It comes with numerous inflation adapters

#9 Master Flow MF-1050 Tsunami High Volume Portable Air Compressor B000L9AD2U

• 12 Volt motor inflates tires quickly
• Inflates a full size truck tire in under 4 minutes (25-35 PSI)
• Inflates a passenger car tire in under 1 minute (25-35 PSI)
• Powers directly from car battery
• Well built portable air compressor.

#10 Stanley J5C09 500-Amp Jump Starter with Built-In Air Compressor B002X6VXL4

• 1000 Peak Battery Amps
• Includes a 120 PSI air compressor, DC & USB charging plugs and a high powered LED light that rotates 270 degrees
• Contains power/charge indicator and audible & visual reverse polarity alarm
• Air compressor works well and especially on auto and truck tires.
• Easy to understand charge meter
• Attached LED light for use at night

Thanks for watching Top 10 Best Portable Air Compressor for Car video Reviews 2015 http://www.youtube.com/watch?v=yVw2Sl.

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Texas A – M – Commerce (GMAT can be waived – it s AACSB-accredited)

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Thread: Texas A M – Commerce (GMAT can be waived it’s AACSB-accredited)

Teachers play an important role in fostering the intellectual and social development of children during their formative years. The education that students acquire is key to determining the future of those students. Whether in elementary or high schools or in private or public schools, teachers provide the tools and the environment for their students to develop into responsible adults.
Teachers act as facilitators or coaches, using classroom presentations or individual instruction to help students learn and apply concepts in subjects such as science, mathematics, and English. They plan, evaluate, and assign lessons; prepare, administer, and grade tests; listen to oral presentations; and maintain classroom discipline. Teachers observe and evaluate a student’s performance and potential. They are increasingly asked to use new assessment methods

�Public school teachers must be licensed, which typically requires a bachelor’s degree and the completion of an approved teacher education program; private school teachers do not have to be licensed but may still need a bachelor’s degree.
�Job prospects are best for teachers in high-demand fields, such as mathematics, science, and bilingual education, and in less desirable urban or rural school districts.
�Teachers must have the ability to communicate, inspire trust and confidence, and motivate students, as well as understand students’ educational and emotional needs.

Click Here
to find FREE information on schools offering this course of study.

Lewis offers the following online degrees: Bachelor�s Degree in Fire Service Administration; Certificates in Nursing Administration and Nursing Education; Master�s Degree in Organizational Leadership (Higher Education, Management, Not-For-Profit, Public Administration, and Training), Information Security (Managerial and Technical); and MSN in Nursing Administration and Nursing Education.

The school is regionally accredited, the most widely recognized accreditation.

Click Here
to receive FREE information on this school.

Colorado State University – Global Campus

Colorado State University – Global Campus

Colorado State University offers accredited Bachelor completion and Master programs in a variety of fields, including business management, organizational leadership, a Masters in Teaching and Learning, and a BS in Social Sciences (degree completion)

The school is regionally accredited, the most widely recognized accreditation.

Click Here
to receive FREE information on this school.

Last edited by dl_mba; 11-08-2011 at 05:15 AM.

Join Date Dec 2011 Posts 4

Hi! Has anyone on here heard anything about the MS in Accounting a TAMU-Commerce? I am interested in the program. Thanks!

Argosy offers online Bachelor’s, Master’s and Doctorate in Business Administration, psychology, and HR-related degrees, with many specialty degrees, including organizational psychology, exercise psychology, HR, public administration, higher education administration, and many more.

Argosy also offers the same degrees and more from 19 locations across the U.S. and is a leader in the distance/online education field.

Argosy has one of the largest graduate student communities in the nation, and is regionally accredited, the most widely recognized accreditation.

Click Here
to receive FREE information on this school.

Join Date Nov 2004 Posts 658

Hi! Has anyone on here heard anything about the MS in Accounting a TAMU-Commerce? I am interested in the program. Thanks!

There is already an active thread about this.


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The Bank of Japan Can’t Jump-Start Inflation #stock #markets


#business week

#

The Bank of Japan Can’t Jump-Start Inflation

On May 29 the Japanese government announced that the country’s consumer prices were unchanged in April from a year earlier, calling into question the power of the central bank’s effort to drive prices upward. The BOJ is acting a bit like a hedge fund, trying any investment to achieve its goal of raising inflation to 2 percent. It’s snapping up not only government bonds but also exchange traded funds, corporate bonds, real estate investment trusts, and venture capital loans—anything to put more money into lenders’ and investors’ hands so they can lend and invest more. “The BOJ deserves the most aggressive award among central banks,” says Yasuhiro Takahashi, a senior economist at Nomura Securities.

The latest consumer price report underscores the difficulty of the central bank’s task. BOJ Governor Haruhiko Kuroda doubled down last October and expanded his policy, formally known as quantitative and qualitative monetary easing. The central bank pledged to raise the monetary base from 60 trillion yen ($482 billion) a year to 80 trillion yen to give banks more money to lend.

The heroic effort has driven the Nikkei 225 Stock Average to a 15-year high and the yen down to almost a 12-year low against the dollar. Although that’s delighted stock investors and big exporters such as Toyota Motor and Shiseido, it hasn’t moved the needle on overall growth or inflation. A majority of 36 economists surveyed by Bloomberg see the BOJ beefing up its program by late October, when it’s expected to update its inflation forecast. If that’s less than 2 percent, the bank will pile on extra stimulus.

Nomura predicts the central bank will switch its focus from bonds to stock purchases next spring, betting a bull market might more effectively stimulate consumer spending. The brokerage sees the BOJ doubling its ETF purchases, to 6 trillion yen, while announcing plans to taper its bond purchases.

Kuroda has said that the plunge in oil prices in the short term delayed progress on generating inflation and that rising wages will engender growth, consumer spending, and higher prices. “It’s really too early to say Kuroda’s easing didn’t work,” says Takahiro Sekido, a former BOJ official who’s now a strategist at Bank of Tokyo-Mitsubishi UFJ.

Japan faces structural challenges, given its aging, shrinking population and its debt burden, the biggest in the developed world. “The BOJ’s policy has been and must be more ambitious,” says former Fed Vice Chairman Donald Kohn, now at the Brookings Institution. “It’s not going to be easy to break expectations [of deflation] that have been entrenched over the decades.”

Fiscal conservatives question the BOJ’s bond-buying, which soaks up about 90 percent of all new government bonds issued to keep long-term rates low. If long-term rates returned to their historical average of 3 percent, from 0.4 percent now, the higher interest payments would push the budget deficit from 8.5 percent to 13 percent of gross domestic product, according to the Organisation of Economic Co-operation and Development. “The BOJ is approaching its limit in bond purchases,” says Nomura’s Takahashi.

Kuroda continues to enjoy the steadfast support of Prime Minister Shinzo Abe, who picked him to run the BOJ in 2013. Abe, though, has so far failed to deliver on the promised labor, tax, and regulatory reforms that economists say are needed to get Japan back on track. Monetary firepower alone won’t revitalize the economy.

The bottom line: If long-term rates return to a more normal 3 percent, Japan’s budget deficit could rise to 13 percent of GDP.

Before it’s here, it’s on the Bloomberg Terminal. LEARN MORE


Tags : , , , , , ,

The Bank of Japan Can’t Jump-Start Inflation #entrepreneurial #ideas


#business week

#

The Bank of Japan Can’t Jump-Start Inflation

On May 29 the Japanese government announced that the country’s consumer prices were unchanged in April from a year earlier, calling into question the power of the central bank’s effort to drive prices upward. The BOJ is acting a bit like a hedge fund, trying any investment to achieve its goal of raising inflation to 2 percent. It’s snapping up not only government bonds but also exchange traded funds, corporate bonds, real estate investment trusts, and venture capital loans—anything to put more money into lenders’ and investors’ hands so they can lend and invest more. “The BOJ deserves the most aggressive award among central banks,” says Yasuhiro Takahashi, a senior economist at Nomura Securities.

The latest consumer price report underscores the difficulty of the central bank’s task. BOJ Governor Haruhiko Kuroda doubled down last October and expanded his policy, formally known as quantitative and qualitative monetary easing. The central bank pledged to raise the monetary base from 60 trillion yen ($482 billion) a year to 80 trillion yen to give banks more money to lend.

The heroic effort has driven the Nikkei 225 Stock Average to a 15-year high and the yen down to almost a 12-year low against the dollar. Although that’s delighted stock investors and big exporters such as Toyota Motor and Shiseido, it hasn’t moved the needle on overall growth or inflation. A majority of 36 economists surveyed by Bloomberg see the BOJ beefing up its program by late October, when it’s expected to update its inflation forecast. If that’s less than 2 percent, the bank will pile on extra stimulus.

Nomura predicts the central bank will switch its focus from bonds to stock purchases next spring, betting a bull market might more effectively stimulate consumer spending. The brokerage sees the BOJ doubling its ETF purchases, to 6 trillion yen, while announcing plans to taper its bond purchases.

Kuroda has said that the plunge in oil prices in the short term delayed progress on generating inflation and that rising wages will engender growth, consumer spending, and higher prices. “It’s really too early to say Kuroda’s easing didn’t work,” says Takahiro Sekido, a former BOJ official who’s now a strategist at Bank of Tokyo-Mitsubishi UFJ.

Japan faces structural challenges, given its aging, shrinking population and its debt burden, the biggest in the developed world. “The BOJ’s policy has been and must be more ambitious,” says former Fed Vice Chairman Donald Kohn, now at the Brookings Institution. “It’s not going to be easy to break expectations [of deflation] that have been entrenched over the decades.”

Fiscal conservatives question the BOJ’s bond-buying, which soaks up about 90 percent of all new government bonds issued to keep long-term rates low. If long-term rates returned to their historical average of 3 percent, from 0.4 percent now, the higher interest payments would push the budget deficit from 8.5 percent to 13 percent of gross domestic product, according to the Organisation of Economic Co-operation and Development. “The BOJ is approaching its limit in bond purchases,” says Nomura’s Takahashi.

Kuroda continues to enjoy the steadfast support of Prime Minister Shinzo Abe, who picked him to run the BOJ in 2013. Abe, though, has so far failed to deliver on the promised labor, tax, and regulatory reforms that economists say are needed to get Japan back on track. Monetary firepower alone won’t revitalize the economy.

The bottom line: If long-term rates return to a more normal 3 percent, Japan’s budget deficit could rise to 13 percent of GDP.

Before it’s here, it’s on the Bloomberg Terminal. LEARN MORE


Tags : , , , , , ,

The Bank of Japan Can’t Jump-Start Inflation #at #home #businesses


#business week

#

The Bank of Japan Can’t Jump-Start Inflation

On May 29 the Japanese government announced that the country’s consumer prices were unchanged in April from a year earlier, calling into question the power of the central bank’s effort to drive prices upward. The BOJ is acting a bit like a hedge fund, trying any investment to achieve its goal of raising inflation to 2 percent. It’s snapping up not only government bonds but also exchange traded funds, corporate bonds, real estate investment trusts, and venture capital loans—anything to put more money into lenders’ and investors’ hands so they can lend and invest more. “The BOJ deserves the most aggressive award among central banks,” says Yasuhiro Takahashi, a senior economist at Nomura Securities.

The latest consumer price report underscores the difficulty of the central bank’s task. BOJ Governor Haruhiko Kuroda doubled down last October and expanded his policy, formally known as quantitative and qualitative monetary easing. The central bank pledged to raise the monetary base from 60 trillion yen ($482 billion) a year to 80 trillion yen to give banks more money to lend.

The heroic effort has driven the Nikkei 225 Stock Average to a 15-year high and the yen down to almost a 12-year low against the dollar. Although that’s delighted stock investors and big exporters such as Toyota Motor and Shiseido, it hasn’t moved the needle on overall growth or inflation. A majority of 36 economists surveyed by Bloomberg see the BOJ beefing up its program by late October, when it’s expected to update its inflation forecast. If that’s less than 2 percent, the bank will pile on extra stimulus.

Nomura predicts the central bank will switch its focus from bonds to stock purchases next spring, betting a bull market might more effectively stimulate consumer spending. The brokerage sees the BOJ doubling its ETF purchases, to 6 trillion yen, while announcing plans to taper its bond purchases.

Kuroda has said that the plunge in oil prices in the short term delayed progress on generating inflation and that rising wages will engender growth, consumer spending, and higher prices. “It’s really too early to say Kuroda’s easing didn’t work,” says Takahiro Sekido, a former BOJ official who’s now a strategist at Bank of Tokyo-Mitsubishi UFJ.

Japan faces structural challenges, given its aging, shrinking population and its debt burden, the biggest in the developed world. “The BOJ’s policy has been and must be more ambitious,” says former Fed Vice Chairman Donald Kohn, now at the Brookings Institution. “It’s not going to be easy to break expectations [of deflation] that have been entrenched over the decades.”

Fiscal conservatives question the BOJ’s bond-buying, which soaks up about 90 percent of all new government bonds issued to keep long-term rates low. If long-term rates returned to their historical average of 3 percent, from 0.4 percent now, the higher interest payments would push the budget deficit from 8.5 percent to 13 percent of gross domestic product, according to the Organisation of Economic Co-operation and Development. “The BOJ is approaching its limit in bond purchases,” says Nomura’s Takahashi.

Kuroda continues to enjoy the steadfast support of Prime Minister Shinzo Abe, who picked him to run the BOJ in 2013. Abe, though, has so far failed to deliver on the promised labor, tax, and regulatory reforms that economists say are needed to get Japan back on track. Monetary firepower alone won’t revitalize the economy.

The bottom line: If long-term rates return to a more normal 3 percent, Japan’s budget deficit could rise to 13 percent of GDP.

Before it’s here, it’s on the Bloomberg Terminal. LEARN MORE


Tags : , , , , , ,

The Bank of Japan Can’t Jump-Start Inflation #small #business #association


#business week

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The Bank of Japan Can’t Jump-Start Inflation

On May 29 the Japanese government announced that the country’s consumer prices were unchanged in April from a year earlier, calling into question the power of the central bank’s effort to drive prices upward. The BOJ is acting a bit like a hedge fund, trying any investment to achieve its goal of raising inflation to 2 percent. It’s snapping up not only government bonds but also exchange traded funds, corporate bonds, real estate investment trusts, and venture capital loans—anything to put more money into lenders’ and investors’ hands so they can lend and invest more. “The BOJ deserves the most aggressive award among central banks,” says Yasuhiro Takahashi, a senior economist at Nomura Securities.

The latest consumer price report underscores the difficulty of the central bank’s task. BOJ Governor Haruhiko Kuroda doubled down last October and expanded his policy, formally known as quantitative and qualitative monetary easing. The central bank pledged to raise the monetary base from 60 trillion yen ($482 billion) a year to 80 trillion yen to give banks more money to lend.

The heroic effort has driven the Nikkei 225 Stock Average to a 15-year high and the yen down to almost a 12-year low against the dollar. Although that’s delighted stock investors and big exporters such as Toyota Motor and Shiseido, it hasn’t moved the needle on overall growth or inflation. A majority of 36 economists surveyed by Bloomberg see the BOJ beefing up its program by late October, when it’s expected to update its inflation forecast. If that’s less than 2 percent, the bank will pile on extra stimulus.

Nomura predicts the central bank will switch its focus from bonds to stock purchases next spring, betting a bull market might more effectively stimulate consumer spending. The brokerage sees the BOJ doubling its ETF purchases, to 6 trillion yen, while announcing plans to taper its bond purchases.

Kuroda has said that the plunge in oil prices in the short term delayed progress on generating inflation and that rising wages will engender growth, consumer spending, and higher prices. “It’s really too early to say Kuroda’s easing didn’t work,” says Takahiro Sekido, a former BOJ official who’s now a strategist at Bank of Tokyo-Mitsubishi UFJ.

Japan faces structural challenges, given its aging, shrinking population and its debt burden, the biggest in the developed world. “The BOJ’s policy has been and must be more ambitious,” says former Fed Vice Chairman Donald Kohn, now at the Brookings Institution. “It’s not going to be easy to break expectations [of deflation] that have been entrenched over the decades.”

Fiscal conservatives question the BOJ’s bond-buying, which soaks up about 90 percent of all new government bonds issued to keep long-term rates low. If long-term rates returned to their historical average of 3 percent, from 0.4 percent now, the higher interest payments would push the budget deficit from 8.5 percent to 13 percent of gross domestic product, according to the Organisation of Economic Co-operation and Development. “The BOJ is approaching its limit in bond purchases,” says Nomura’s Takahashi.

Kuroda continues to enjoy the steadfast support of Prime Minister Shinzo Abe, who picked him to run the BOJ in 2013. Abe, though, has so far failed to deliver on the promised labor, tax, and regulatory reforms that economists say are needed to get Japan back on track. Monetary firepower alone won’t revitalize the economy.

The bottom line: If long-term rates return to a more normal 3 percent, Japan’s budget deficit could rise to 13 percent of GDP.

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