Bank of Japan Unexpectedly Eases Policy

The Bank of Japan (BOJ) has made a significant move by increasing its monetary stimulus, boosting global stocks. This action, advocated by economists like Nouriel Roubini, addresses economic risks and policy inertia in Europe and Japan. The BOJ's decision has sparked a debate on currency manipulation, with concerns about its impact on Japan's neighbors and potential currency wars. The stimulus is equivalent to $90 billion, similar to the US Fed's peak actions, and represents 16% of Japan's GDP, highlighting the scale of the intervention.

What was the primary action taken by the Bank of Japan that impacted global stock markets?

• Decreasing interest rates

• Reducing government spending

• Increasing monetary stimulus

• Introducing new taxes

Which economist was mentioned as having advocated for the BOJ's recent actions?

• Paul Krugman

• Nouriel Roubini

• Milton Friedman

• Janet Yellen

What potential consequence of the BOJ's actions is highlighted in the transcript?

• A currency war

• An increase in unemployment

• A decrease in Japanese exports

• A rise in global inflation

How does the BOJ's stimulus compare to the Federal Reserve's actions?

• It is smaller in scale

• It is equivalent to the Fed's peak actions

• It is unrelated to the Fed's actions

• It is larger than the Fed's actions

What percentage of Japan's GDP does the BOJ's stimulus represent?

• 10%

• 16%

• 25%

• 30%