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Last week, the Federal Reserve announced the end of its bond-purchasing program, known as quantitative easing. Citing enough substantial improvement in the labor market and sufficient underlying strength in the broader economy, the Fed said that October would be the final month of the program.
On Friday, the Bank of Japan (BOJ) took the markets by surprise by announcing the expansion of Japan’s qualitative and quantitative easing (QQE) program and recommitted to achieving 2% inflation. Markets jumped, and with the ongoing economic troubles in Europe and market volatility in the US, it seems possible that other nations will follow Japan’s lead. AEI economist John Makin writes that Japan overcame fear of inflation and with this decision indicates an aggressive push against deflation. Similar decisions may await the US Fed and the European Central Bank:
Read his full piece, “The BOJ’s Halloween Surprise.”
To arrange an interview with Makin or another AEI expert, contact a member of the media services team or email mediaservices@aei.org (202.862.5829).
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