Monday, March 14, 2011

Japan's Central Bank Responds to Economic Concerns due to Earthquake

link here to article

Japan's economy is at risk due to earthquake. The Central Bank has taken actions to pump up the economy by adding liquidity. Short term interest rates in Japan are already close zero, just as they are in the US, so the Central Bank is doing what the US Federal Reserve has been doing. We call it quantitative easing when the Fed purchases long term treasury's and other assets.

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