CAMBRIDGE: The economic world breathed easier when the Bank of Japan announced that it would expand Japan’s money supply in order to boost demand. Japan’s stock market soared nearly 10%, though it has fallen a bit since. Worries about Japan – the world’s second-largest economy, gripped by stagnation for years – are high. Unless its monetary policy really changes, both America and Japan could fall into recession simultaneously, with risks for all the world.
CAMBRIDGE: The economic world breathed easier when the Bank of Japan announced that it would expand Japan’s money supply in order to boost demand. Japan’s stock market soared nearly 10%, though it has fallen a bit since. Worries about Japan – the world’s second-largest economy, gripped by stagnation for years – are high. Unless its monetary policy really changes, both America and Japan could fall into recession simultaneously, with risks for all the world.