Helicopter Money Predictions Are Still Flying High in Japan
- Some form of the policy most likely option for September: UBS
- Japan is most likely location for helicopter money: Aberdeen
Is Massive Stimulus on Deck for the Bank of Japan?
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Speculation of helicopter money refuses to die in Japan, despite repeated denials by Bank of Japan Governor Haruhiko Kuroda.
From Japan-based economists to global investors including Templeton Emerging Markets Group Executive Chairman Mark Mobius, there’s a reluctance to rule out the controversial policy coming as soon as next month amid the monetary authority’s struggles to stoke growth and inflation. Kuroda has said at least four times since April that helicopter money is not under consideration, and is prohibited by current law. He repeated over the weekend that there remains “ample space for additional easing” under the existing policy framework.