BBC World News: The ongoing wave of quantitative easing – is Japan’s monetary easing a sign of a global anti-austerity tsunami?

10 BBC World Japan Quantitative EasingMirtchev, A. (2013, April 4). The ongoing wave of quantitative easing – is Japan’s monetary easing a sign of a global anti-austerity tsunami? BBC World News 

In an interview on the BBC, Dr. Alexander Mirtchev, Senior Scholar at the Woodrow Wilson International Center for Scholars and president of Krull Corp. discusses the ongoing global plans to loosen monetary policy. The latest step in worldwide quantitative easing measures was undertaken by Japan, which broke away from years of financial discipline. Japan’s central bank – the Bank of Japan – announced an unprecedented stimulus package of $1.4 trillion over 10 years. This policy provided a short-term fillip to global markets that were starved for some form of good news. Monetary easing is working by providing a new direction of policy activities that affect the perception of the world markets about the willingness of major economies to be part of a global recovery. “The Bank of Japan’s monetary easing should be viewed as a bold political statement, rather than a set of policies that still need to be tested before assessing how they will be implemented in practice and what they will mean,” indicated Mirtchev. This policy can be seen as part of the global wave of anti-austerity sentiments that appear to be coming to the fore after several years of dealing with low growth and inflation and extensive state indebtedness. This policy changes the way in which the markets see the direction that the Japanese economy is taking. It also, according to Dr. Mirtchev, “provides a new bold direction of think in Japan and affects the perception of the world of the shape of the global economy.”