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Weekly Comic: Former Fed Chief Ben Bernanke takes his stimulus wisdom to the BOJ

Published 07/21/2016, 08:17 AM
Updated 07/21/2016, 08:17 AM

Investing.com - This week’s comic touches on former Federal Reserve Chair Ben Bernanke’s most recent visit to the Bank of Japan, which sparked speculation the BoJ will introduce fresh stimulus measures in the form of “helicopter money,” where a central bank directly underwrites government borrowing.

Market speculation of further easing spiked last week after Bernanke told Japanese Prime Minister Shinzo Abe that there were still "various tools available" for monetary policy to spur growth.

A Reuters poll showed 85 percent of analysts expect the BOJ to ease on July 29, alongside the fiscal spending boost Abe is set to announce this month.

On Thursday, Bank of Japan Governor Haruhiko Kuroda ruled out the idea of using "helicopter money" to stimulate Japan's economy. However, it was later reported that the interview was conducted in mid-June.

To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics

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