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World's Most Daring Monetary Experiment Powers on With Abe's Win

  • Abe’s re-election green lights Bank of Japan’s easing program
  • BOJ to be at odds with global peers nudging toward tightening
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Shinzo Abe's Coalition Retains Two-Thirds Majority

Prime Minister Shinzo Abe’s solid election win green lights a continuation of the Bank of Japan’s massive economic stimulus, entrenching a divide with global peers who are either heading in the opposite direction or mulling moves to do so.

While growth in the world’s third-largest economy has picked up, inflation remains nowhere close to the BOJ’s 2 percent target. Continued easing means Japan should remain a source of liquidity for the world economy and especially emerging markets in Asia that are vulnerable to rising interest rates.