IMF research: Japan’s easy policy benefits Asian economies

WASHINGTON:  

Japan’s extraordinarily easy monetary policy, a source of friction with the United States for pushing the yen’s value down, has had some positive effects on the emerging Asian economies, including increased growth and equity prices, the International Monetary Fund (IMF) researchers have found.

The findings were released in a paper on Friday, as Group of Seven finance ministers and central bank governors began meeting in Japan, where divergent views on Japan’s monetary policy and currency market interventions were expected to be a hot topic.

The paper claims to be the first to model the spill-over effects of Japan’s qualitative and quantitative easing programme (QQE) on Southeast Asian countries. QQE was launched in 2013 and targets both government bond purchases as well as other assets, such as exchange-traded funds and real estate investment trusts.

Published in The Express Tribune, May 22^nd, 2016.

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