Previously on MoreLiver’s:
Special: US Employment Report (updated)
Special: ECB Watch (updated)
Special: Bailout of Cyprus (updated)
Bank of Japan scraps overnight call rate, sets base money as new target – Reuters
The BoJ decided on a
radical overhaul of its policy framework on Thursday, shifting its target when
setting monetary policy to base money from the current overnight call rate.
Bank of Japan Boosts Bond Purchases as Kuroda Takes Helm – BB
With Kuroda presiding
over his first meeting since taking the helm last month, the board today
streamlined its asset purchase programs, temporarily suspended a cap on some
bond holdings and dropped a limit on debt maturities. The BOJ will buy 7
trillion yen ($74 billion) of bonds a month, the central bank said in a
statement.
Presenting… the new BoJ – alphaville / FT
This sort of initial
euphoria has fizzled out before — but the new Bank of Japan governors appear to
have actually come through with the goods
Bank of Japan Launches Easing Campaign – WSJ
Bank of Japan
Launches Strong Easing Campaign
– WSJ
BoJ Unveils 'Shock-And-Awe'
Quantitative-Qualitative Easing
– ZH
Yen Falls Versus
Peers as BOJ Purchases Exceed Forecasts – BB
Koo: Currency Markets Are Misinterpreting the
Impact of QE – PragCap
Japan: Don't fight Kuroda – Danske Bank (pdf)
The new Bank of Japan
(BoJ) governor Haruhiko Kuroda definitely left his mark in connection with
today’s monetary meeting, at which BoJ announced easing measures that far
exceeded market expectations. The main messages from the meeting are BoJ’s
strong commitment to its 2% inflation target and that aggressive monetary
easing will be continued next year. This suggests that JPY will continue to
depreciate.
Kuroda's "Shock And
Awe" Post-Mortem From Goldman And SocGen – ZH
BoJ revolution: five things
you need to know – Money Supply / FT
Kuroda follows the path of Volcker and
Greenspan – The A-List / FT
Stephen King: So far,
so good. The commitment is most definitely there and the ambition has now been
well-defined. Yet Japan is not yet out of deflationary trouble and, even in the event of the
monetary equivalent of the Great Escape, it might still all end in
disappointment.
Bank of Japan
Getting Better at Playing With Markets – WSJ
The BoJ massive – alphaville / FT
For those who need a
rundown of what the BoJ actually did, here’s a summary from Nomura:
Check Out Yen’s Explosive Move After BOJ
Meeting – MarketBeat / WSJ
Make no mistake, the
Bank of Japan just pulled out all the stops to boost its flailing economy.
Abe’s
European spring break – MacroScope / Reuters
Japan stimulus sends euro
zone yields to record lows
Kuroda’s move will
unleash copycat loosening – The A-List / FT
With the announcement by Haruhiko Kuroda, the Bank of Japan’s new
governor, of the doubling of the monetary base within the next two years at
most, the Japanese authorities committed to do “whatever it takes” to achieve
their newly assigned objective — an inflation rate of 2 per cent. Two questions
should be raised. First, why such a drastic step up in monetary expansion? Second,
will it work?
Japan: A cunning plan – Buttonwood’s / The Economist
Generate inflation and
consumers will start spending, business confidence will improve and growth will
resume. This will reduce the government's annual deficit and reduce the real
value of the debt over time. Problem solved. But what about investors?
Abenomics Takes Off: Can Japan Un-Doom Itself? – The Atlantic
14 years later, Japan is finally taking Ben Bernanke's advice
The Promise of Abenomics – Project Syndicate
Joseph E. Stiglitz:
Japanese Prime Minister Shinzo Abe is doing what many economists have been
calling for in the US and Europe: a
comprehensive program entailing monetary, fiscal, and structural policies. As
many Japanese rightly sense, Abenomics, with its focus on monetary, fiscal, and
structural policies, can only help the country’s recovery.
Abenomics
is the only way to stop Japan's debt compound crisis – The Telegraph
Those who say Japan has been muddling
through just fine in permanent deflation with an overvalued yen are indeed
"macro-tourists". No nation can allow itself to atrophy in this way. The
surprise is that it took Japan so long to wake up.
Daily Interest Rate
Monitor – Global Macro Monitor
Recap – Global Macro Trading
Japan
stimulus will start currency war, say Chinese economists – SCMP
Plan to buy bonds will
open liquidity floodgates and spells doom for other nations, observers say
Japanese FinMin Warns Surge In JGB Volatility
May Lead To A Sharp Bond Selloff
– ZH
Nikkei 63,000,000 And Other Flashbacks: The
Complete Dylan Grice Japan
Series – ZH
24-page research note.
Japan Bond
Market Halted For Second Day In A Row – ZH
BofJ’s ‘Shock and Yen’ Policy Helps Markets
Outside Japan, Too – MarketBeat
/ WSJ
Why Japan is
the most interesting story in global economics right now – Wonkblog
/ WP
If everything works as
planned, Japan’s industrial will return on the back of a weaker yen, an improving
economy will improve its deficit picture, and the nation will soon have a
goldilocks economy of prices rising about 2 percent a year and debt to GDP
levels coming down. If things go awry, we could soon be staring at the mother
of all sovereign debt crises.
Abenomics
and Asia – Project
Syndicate
Japanese Prime
Minister Shinzo Abe’s economic agenda seems to be working for his country. The
question now is whether Abenomics can achieve its goals without destabilizing
the world economy, especially neighboring Asian economies.
Yen Surges As Japan's
Deputy PM Says Excessive Yen Gain "Corrected" – ZH
Why Abenomics Matters – CFR
Be excited, be, be excited: BoJ edition – alphaville
/ FT
Guest post: QE on steroids in Japan – alphaville
/ FT
Front-Running Markets Get Carried Away By Bank
of Japan – WSJ
“For every Japanese
investor seeking yield, there is a foreign one searching for returns from
Japanese equities”
Mr Soros Trumps Mrs Watanabe – ZH
The bulk of JPY
selling pressure has come during non-Tokyo trading hours,
Japan’s currency war has just begun – MacroBusiness
Global macro UBS
analyst, Syed Mansoor Mohi-uddin, has a very neat little note out this morning
summarising the revolution that has just taken hold of Japanese monetary policy
Taking QE to a whole new level – Sober Look
Displaced JGB Investors – Marc to
Market
What the Bank of Japan
is doing is not unprecedented. Rather it is the pace of its asset purchases
that is striking.
Joseph Stiglitz : Why Abenomics will work – The
Sydney Morning Herald
Monetary Policy In A Liquidity Trap – Krugman
/ NYT
The hope now is that
things have changed enough at the Bank of Japan that this time it can, as I put
it all those years ago, “credibly promise to be irresponsible”.
Is the Yen overdone — not even close! – Peter Brandt
Quantitative and qualitative monetary easing – BIS (pdf)
Speech by Mr Haruhiko
Kuroda, Governor of the Bank of Japan, at a meeting held by the Yomiuri
International Economic Society, Tokyo, 12 April 2013.
After the central
bank’s radical moves, now is the time for the prime minister to show his mettle