Fidelity bank card banner Camano banner
Japan’s economy has a $5 trillion problem

By Daniel Shane on 14/11/2018

Views: 614

• Bank of Japan Governor Haruhiko Kuroda
• Bank of Japan Governor Haruhiko Kuroda

An epic bond-buying spree by Japan's central bank means it's now sitting on assets worth more than the country's entire economy.

Data released by the Bank of Japan on Tuesday show that its total holdings stand at 553.6 trillion yen ($4.9 trillion) following years of money printing aimed at jump starting the country's stagnant economy. That's bigger than Japan's annual gross domestic product at the end of the second quarter — and more than five times the size of Apple's (APPL) market value.

The years of heavy stimulus have warped parts of Japan's financial markets and left the central bank with dwindling options to juice growth if a new crisis hits. But the splurge is unlikely to end anytime soon.

The Bank of Japan has accumulated most of the enormous stockpile of assets since its governor, Haruhiko Kuroda, embarked on an unprecedented plan in 2013 to buy vast amounts of government bonds. Its goal was to push down interest rates, encouraging consumers and businesses to spend more money.

The move was similar to the extraordinary monetary easing programs launched in the United States and Europe in the aftermath of the global financial crisis. But Japan's is far greater in scale in relation to the size of its economy.

The US Federal Reserve's total assets are about one fifth of the size of US GDP, and the European Central Bank's are around 40% of the eurozone economy.

The Fed announced a halt to its bond-buying spree in 2014 and is now raising interest rates, and the ECB will stop its program next month. But the Bank of Japan's binge has no end in sight.  (CNN)

 

Source News Express

Posted 14/11/2018 11:51:26 AM

 

 

CLASSIFIED ADS

 

You may also like...
House summons Agriculture Minister over Genetically Modified Foods...

Crash: NCAA begins immediate audit of airlines

Breaking News: Nigerian Christians launch spiritual war against...

Bayelsa Assembly members get life pensions

110 students bag NNPC/SNEPCo scholarship

Buhari has all it takes to win March...

Unknown gunmen kill Police Corporal

CBN challenges bank customers on failed e-transactions

Delta commissioner charges journalists to be objective, plans...

Kaduna Local Government Law a setback for democracy...

NSE: Investors lose N265bn

Secondary School Certificate — A compulsory requirement to...

 

Latest News Why FG is yet to pay new minimum wage: Oyo-Ita COZA: IGP orders FCID to take over rape allegation Protest: We lost 11 members to Police bullets, 30 injured — Shi’ites No more amnesty for criminals —Imo Government •Oil landlords insist on state producing next NDDC MD Recruitment: Army warns Nigerians against fraudsters 500 prisoners enroll with NOUN Kidnappers kill 8-year-old girl in Kano FRSC promotes 64 Assistant Corps Commanders to Deputy Corps Commanders Anybody calling for our return to North is a joker —Hausa community in Nnewi Court bars NASS from taking over Bauchi Assembly Ayade ‘has committed impeachable offence’ Nobody is safe in Nigeria, says Bishop, as Fasoranti’s daughter is laid to rest

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (511,404 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (431,981 views) Shameless Genevieve Nnaji exposes breasts in public (374,125 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (317,126 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (282,932 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (247,499 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (239,785 views) 10 cars more expensive than Jets (224,864 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (221,609 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (209,166 views) Lagos plane crash: Journalist releases victims’ names (188,688 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (187,285 views)

 

NLNG Job Vacancy

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (97) Business & Economy (4,359) Business Verdict (76) Columnists (1,076) Complaints & Requests (95) Enterprise & Opportunities (211) Entertainment (636) Features (781) Global Business Monitor (396) ICT Monitor (54) International (3,738) Interview (194) Live Commentary (30) Love Matters (164) Maggie's Blog (342) News (48,972) Opinion (1,293) Pidgin (17) Politics (11,183) Religion (1,053) Sports (2,106) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera