, Columnist
Japan Is Going for Broke. Minus the Broke Part
The prospect of monetary and fiscal coordination means this stimulus bill will get paid. But central bank independence is also on the line.
The stimulus package will be this big. Wait, wait. Even bigger.
Photographer: Shinnosuke Ito/The Asahi ShimbunThis article is for subscribers only.
In putting a floor under the world's third-largest economy, Japan is going for broke. Minus the broke part.
The central bank has effectively pledged to do almost anything to contain the cost of borrowing, even entertaining proposals that challenge its independence. The rest of the world, including the Federal Reserve, is watching with great interest. Far from being a policy outcast, Japan may be writing the future.