{"id":14026,"date":"2015-11-01T08:47:55","date_gmt":"2015-11-01T13:47:55","guid":{"rendered":"http:\/\/olduvai.ca\/?p=14026"},"modified":"2015-11-01T08:51:42","modified_gmt":"2015-11-01T13:51:42","slug":"14026","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=14026","title":{"rendered":"Haruhiko Kuroda \u2013 The Pressure to \u201cDo More\u201d Rises"},"content":{"rendered":"<h3 class=\"art-postheader\"><a title=\"Permanent Link to Haruhiko Kuroda \u2013 The Pressure to \u201cDo More\u201d Rises\" href=\"http:\/\/www.acting-man.com\/?p=41053\" rel=\"bookmark\">Haruhiko Kuroda \u2013 The Pressure to \u201cDo More\u201d Rises<\/a><\/h3>\n<p><strong>BoJ Leaves Policy Unchanged, but What Comes Next?<\/strong><\/p>\n<p>The Bank of Japan has employed QE programs since March of 2001 (in February of 2001, it still claimed that \u201cQE will be ineffective\u201d \u2013 it was right then, for the last time). These have had no effect apart from making a Keynesian government spending orgy possible that is unique in terms of its size in the post WW2 developed world. It is also unique insofar as it hasn\u2019t yet blown up.<\/p>\n<p>QE was briefly interrupted in 2006, when the BoJ reduced the monetary base by 25% within a few weeks (this barely affected the money supply, although we have to add the caveat that Japanese money supply data are not directly comparable to Western ones).<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-41055 size-full\" src=\"http:\/\/www.acting-man.com\/blog\/media\/2015\/10\/2-percent-kuroda.jpg\" alt=\"2 percent kuroda\" width=\"640\" height=\"412\" \/>Kuroda demonstrating the loony-tunes 2% fetish of modern central bankers to journalists<br \/>\nPhoto credit: Haruyoshi Yamaguchi \/ Bloomberg<\/p>\n<p>After the GFC, governor Masaaki Shirakawa (\u767d\u5ddd \u65b9\u660e) reluctantly restarted QE; he was essentially convinced that monetary policy flim-flam of this sort would be useless, but a lot of pressure was exerted and he ultimately gave in. Following Shinzo Abe\u2019s election, it was clear that a more pliant BoJ leadership would be appointed, and not surprisingly, under governor Haruhiko Kuroda (\u9ed2\u7530 \u6771\u5f66), the BoJ has essentially decided to \u201cgo all in\u201d.<\/p>\n<p><a href=\"http:\/\/www.acting-man.com\/blog\/media\/2015\/10\/1-BoJ-assets.png\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-41054\" src=\"http:\/\/www.acting-man.com\/blog\/media\/2015\/10\/1-BoJ-assets-1024x513.png\" alt=\"1-BoJ assets\" width=\"640\" height=\"321\" \/><\/a>The earlier QE programs that began in 2001 were considered \u201cradical\u201d at the time. We\u2019re not sure what kind of adjective would be most fitting to describe the current exercise. \u201cCompletely lunatic\u201d will probably do \u2013 click to enlarge.<\/p>\n<p>Yesterday, the BoJ decided not to add to its existing monetary pumping program, but voted once again to maintain the parabolic pace in asset purchases already underway. The entire exercise is based on the widely accepted, unproven, and utterly absurd neo-Keynesian shibboleth that the purchasing power of money\u00a0<em>must<\/em>\u00a0decline by 2% per year, as anything less is not considered \u201cprice stability\u201d.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Haruhiko Kuroda \u2013 The Pressure to \u201cDo More\u201d Rises BoJ Leaves Policy Unchanged, but What Comes Next? The Bank of Japan has employed QE programs since March of 2001 (in February of 2001, it still claimed that \u201cQE will be ineffective\u201d \u2013 it was right then, for the last time). These have had no effect [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,57,124,2854,452,467,10393,536,6170,661,662,2189],"class_list":["post-14026","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-bank-of-japan","tag-central-banks","tag-haruhiko-kuroda","tag-japan","tag-keynesian-economics","tag-masaaki-shirakawa","tag-money","tag-pater-tenebrarum","tag-qe","tag-quantitative-easing","tag-shinzo-abe"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14026"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14026\/revisions"}],"predecessor-version":[{"id":14028,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14026\/revisions\/14028"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}