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Japan Needs 100 Trillion-Yen ‘Helicopter’ Drop, Citigroup Says

The Bank of Japan’s 5 trillion-yen ($62 billion) asset-purchase fund is too small and ought to be as large as 100 trillion yen to rid the economy of deflation, according to Citigroup Inc. Chief Economist Willem Buiter.

“Japan will likely need ‘helicopter money drops’ to ensure a full escape from the Great Deflation,” Buiter and other Citigroup economists including Tokyo-based Kiichi Murashima said in a note to clients dated Oct. 28. “The scale of the quantitative easing that is required is an order of magnitude larger than what has been announced.”