Masaaki Shirakawa News
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It’s not paying to be either an insider or the favorite when it comes to landing the top job at a Group of Seven central bank.
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Central bank veterans are lining up to highlight the Achilles’ heel of Prime Minister Shinzo Abe’s economic revival plan: the world’s fastest aging society.
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Japan’s inflation may rise above 1 percent in the year starting April 2014 and approach a 2 percent target either that year or later, central bank policy board member Ryuzo Miyao said.
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Shizuoka Bank Ltd. joined Japanese national lenders in expanding U.S. dollar finance activity, anticipating monetary easing will crush margins on yen loans.
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Central banks are setting new expectations for monetary policy that may be hard to reverse as they slide deeper into the realms of fiscal policy.
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Governor Masaaki Shirakawa expanded the Bank of Japan’s assets by 50 percent, introduced an inflation target and safeguarded his nation’s banking system from shocks. Yet when he announced he was leaving three weeks early, stocks soared to a four-year high.
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The Bank of Japan’s “huge bet” by boosting quantitative easing won’t turn the economy around and is instead sending the nation toward default, said Takeshi Fujimaki, former adviser to billionaire investor George Soros.
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As Haruhiko Kuroda walks into his first policy meeting as Bank of Japan governor, he must be in a Mario Draghi state of mind.
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The world’s monetary floodgates are swinging wide open.
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It was an elite band of graduate students that in the early 1970s attended intense economics sessions in a small, austerely furnished basement under the 15th-century lodge at All Souls College at the University of Oxford.
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