Thursday, July 7, 2016

Rumors of helicopter droppings



Separately, Bernanke, who led the Fed through the global financial crisis in 2008, will be in Japan next week. It has been arranged for him to meet officials including Abe and Bank of Japan Governor Haruhiko Kuroda, according to a government official speaking on condition of anonymity.
Bernanke is expected to discuss Brexit and the BOJ's negative interest rate policy with Abe and Kuroda, the official said.
Some market players speculate Kuroda might decide, in a surprise, to provide "helicopter money" - a term coined by American economist Milton Friedman and cited by Bernanke, before he became Fed chairman, when talking about how central banks might finance government budgets as a way to seek to fight deflation.


The BOJ governor has repeatedly denied that the BOJ would adopt such a policy, saying it is as an "impossible" option under current law separating the government's role in fiscal policy from the BOJ's in monetary policy.

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