Is an interesting article…
Bank of Japan Announces Massive Stimulus Move
In Stunning Reversal, Japan’s Central Bank and Government Pension Fund Vow to Pump Trillions of Yen into Assets
By JACOB M. SCHLESINGER, ELEANOR WARNOCK and TAKASHI NAKAMICHI
Updated Oct. 31, 2014 7:52 p.m. ET
TOKYO—Japan’s central bank and its main government pension fund said Friday they would pump trillions more yen into the country’s sputtering economy, taking a risky new stimulus tack that jolted global markets.
Faced with fresh evidence that Prime Minister Shinzo Abe ’s campaign to end the country’s long bout with deflation was faltering, the two institutions steered Japanese economic policy into the uncharted territory of extreme stimulus that appeared to go even beyond the often radical measures taken by other advanced economies in recent years.
A long article, but well worth the read. Also has some nice graphs. One showing asset purchases for US, Eu, and Japan as percent of GDP. Japan shooting up, USA rising, EU with a hump, but rolling down now.
Looks to me like The Japanese Model of how to stimulate an economy teetering on deflation hasn’t worked, but they are going to shove the money throttle to the wall. One way or the other we’ll get an answer. Hopefully before the USA and EU hit that same wall…