While the Federal Reserve under Ben Bernanke is holding off on additional quantitative easing measures, across the Pacific the Bank of Japan has initiated a new round of asset buying.
According to the Financial Times , the Bank of Japan has announced that more quantitative easing is being implemented in the island nation due to “slowing growth and persistent deflationary forces in the world’s largest economy.”
In the new round, the Bank of Japan will buy $61 billion of assets to inject greater liquidity into the economy as the “lost decade” lingers years longer than its name implies. In addition to the asset buying, the Bank of Japan is maintaining interest rates between zero and 0.1% .
With the recent move by China to relax controls on the yuan, currency devaluations continue to be implemented as a Keynesian response to recession by governments and central banks around the world.
Full article: Bank of Japan opens fire in currency wars (NASDAQ)