An announcement made yesterday by the Bank of Japan (BOJ) sent the Yen plummeting and investors around the world into discussion. The BOJ has promised to pump $1.4 trillion into the economy in less than 2 years; this is the most robust monetary injection into an economy in recorded history.
The reason for such a brave gamble is to end the stagnation that the Japanese economy has been going through for the past few years and get their inflation up to a minimum of 2pc. According to the article, the next step would be drastic regime changes in Japan.
Investors around the globe believe it is a high gamble and many do not believe that they will achieve their 2pc goal, the news made the Yen and bond yields plummet almost immediately to record lows.
If the BOJ manages to achieve their goal of 2pc inflation and get the country out of deflation it would be good for everyone!
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