Over at Project Syndicate, Thomas Palley outlines the argument about how the yen carry trade is fuelling global asset bubbles — although Finance Minister Omi denies that Japan's low interest rates are the cause of the carry trade.Aside from rehearsing the standard arguments about how Japan's barely-over-zero interest rates contributes to global instability and the …
Tag: Bank of Japan
Quantative easing continues
So the BOJ opted to raise interest rates by .25%. Ken Worsley has the wrap-up here.It seems that the effect on the carry trade will be negligible; the EU will no doubt still complain about the weak yen; and the BOJ's independence is still in doubt.
Interest rates, again
The Bank of Japan is due to consider once more tomorrow whether it is the right time to raise Japan's interest rates again.The last time, you may recall, the Bank's policy meeting was surrounded by a storm of debate surrounding comments by senior LDP and government officials questioning the wisdom of raising rates again (discussed …
Will they or won’t they?
The "they" in the title of this post are, of course, the members of the Bank of Japan's Policy Board, and the 120.54 million yen question is whether its members will vote to raise interest rates on Thursday.Call me naive, but I'm used to the Fed's way of doing business, namely advertising the direction of …
Tobias S. Harris 