JAPAN prizes caution and consensus. So it was remarkable when the Bank of Japan (BoJ) suddenly promised to buy ¥80 trillion ($705 billion) of government bonds a year until the economy is clear of deflation—and the government’s huge pension fund joined it, saying that it would double its holdings of Japanese and foreign equities. With annual purchases equivalent to over 15% of GDP, the BoJ is venturing into new territory. Relative to the economy, its balance-sheet will dwarf those of the Fed, the Bank of England or the European Central Bank.
Read Full Article »
