“Vastly changing handbook”
In the April 2013 economic update video for eZonomics, ING head of macroeconomics Maarten Leen explains how the Bank of Japan raised its inflation target to 2% within about two years and announced large scale quantitative easing (QE) that is set to double the country’s money supply.
“The central Bank of Japan has added a new chapter to the vastly changing handbook of central bankers,” says Leen.
What’s next for Europe?
Leen says the move in Japan comes as other central banks are considering next steps to encourage borrowing and stimulate economic growth.
“The next central banker to write another chapter in the continuing story of monetary easing could very well be Mario Draghi, the president of the European Central Bank,” he says. “Earlier this month, Draghi said that the ECB was considering using various tools beyond lower rates in case Europe’s economy would need more help.”