Skip to content
Subscriber Only

BOJ Stimulus Impotence Threatens Inflation Aim: Chart of the Day

The Bank of Japan is getting less and less bang for its yen as it expands monetary-stimulus programs aimed at boosting annual inflation to 2 percent.

The CHART OF THE DAY shows the so-called money multiplier fell in January to the lowest since 2003, when data became available, signaling the amount of money in the economy dropped relative to funds provided by the BOJ. The ratio of outstanding bank lending to customer deposits is also tracked as it holds near an all-time low. The lower panel shows the yield on Japan’s 10-year government note struggled to maintain gains since dropping to a record 0.315 percent on April 5, the day after the BOJ expanded monthly bond purchases.