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17 Apr 2013
Forex Flash: BOJ plan not significantly more aggressive than Fed’s QE - Nomura
FXstreet.com (Barcelona) - The BOJ’s new policy would lift growth in the money supply—and therefore inflation—from 4.8x to 18.7x, says Richard Koo, economist at Nomura, who uses as principle the concept of statutory reserve deposit multiples.
Richard adds: "The latter number is much higher than the corresponding figures of 9.7x for the UK or 3.8x for the eurozone, but is roughly equal to the US multiple of 16.0x and somewhat less than the 21.6x peak there. In that sense, the BOJ’s easing program can be viewed as an attempt to catch up with (and overtake) the Fed on the easing front."
Richard adds: "The latter number is much higher than the corresponding figures of 9.7x for the UK or 3.8x for the eurozone, but is roughly equal to the US multiple of 16.0x and somewhat less than the 21.6x peak there. In that sense, the BOJ’s easing program can be viewed as an attempt to catch up with (and overtake) the Fed on the easing front."