Thursday, May 31, 2012

More of the same...

"Financing" the budget deficit?  How long are we going to be saddled with this line of thinking?

TOKYO—Bank of Japan policy-board members expressed concerns that the central bank's massive purchases of government debt could be seen as financing the budget deficit, eroding confidence in fiscal policy and bringing about unwanted jumps in bond yields.
But meeting minutes from April 27 released on Monday also suggest the central bank may not have many alternatives to buying the government bonds—with little room left for purchases of riskier assets as it tries to pump more money into the economy in a bid to end deflation.

No comments: