More trouble on the BOJ succession

In a meeting between Oshima Tadamori and Yamaoka Kenji, the Diet strategy chairmen of the LDP and DPJ respectively, the two parties came closer to an agreement on joint personnel decisions. They discussed a proposal that envisions an "expanded representatives committee" of twenty from both houses that will question government-nominated candidates about their policy positions …

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The headline says yes, but the body says not yet

The FT's David Pilling reports that the DPJ will accept the government's nomination of Muto Toshiro, currently the BOJ's deputy governor, to serve as Fukui Toshihiko's successor as BOJ governor.At least that's what one might think from the headline: "Japanese opposition to accept new bank chief."The body of the article, however, indicates that while the …

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Japan’s revenge

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 …

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