“We Aren’t Thinking About It At All”, Or How Kuroda Just Assured That Helicopter Money Is Coming To Japan
Yesterday according to Bloomberg, BoJ governor Haruhiko Kuroda said that he isn’t thinking about using so-called helicopter money, and that the notion contradicts the law.
“In advanced nations nowadays, fiscal policy is determined by the government and the parliament while monetary policy is decided by the central bank, which is separate from government and parliament,” Kuroda told lawmakers in the Japanese Diet. “Deciding and implementing these things together would contradict the current legal framework. So unless the existing legal framework changes, helicopter money isn’t possible, and we at the Bank of Japan aren’t thinking about it at all.“
If you read the end of that carefully, you’ll want to revisit our article on how to trade the coming helicopter money (here). First, we’ll start with the fact that Deutsche Bank already has an answer on how to work around the “current legal framework”, and it’s called simply getting the legislature’s approval.
…click on the above link to read the rest of the article…