The Bank of Japan Puzzle

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The Bank of Japan Puzzle

 

Weekly balance sheet data from the World’s major Central Banks confirm stability in aggregate liquidity growth (latest 19.3% 3m ann.). Data for the G4 (exc. China) record a similar 18.7%. Diving deeper into the data shows that the US Fed and ECB are holding steady, while the Bank of Japan and Bank of England continue to curtail liquidity growth.

PBoC liquidity injections are oscillating, in rhythm with the Renminbi/US dollar exchange rate.

 

 

 

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