Bank of Japan’s Kuroda Rules out ‘Helicopter Money’: BBC

Bank of Japan Governor Haruhiko Kuroda ruled out the idea of using “helicopter money” – or directly underwriting the budget deficit – to combat deflation, as policymakers in Tokyo gear up to expand existing stimulus programs.

Japanese markets have risen this month on speculation that authorities, battling to revive an economy dogged by decades of anemic inflation, will resort to using helicopter money, possibly issuing perpetual bonds to underwrite public debt.

But in a BBC interview broadcast on Thursday, Kuroda said the central bank already had mechanisms in place to ease policy further if needed, and that Japan should not forfeit a clear separation between fiscal and monetary institutions.

Reuters

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.