In short, the central banks' reflationary
policies could in fact be the very source of the disinflation, or indeed deflation, they are trying to prevent.
Meanwhile, no other obvious influences presented themselves, with relative quiet persisting in relation to China's uncertainties, Japan's continuing reflationary
policy experiment, emerging markets waiting for the Fed, oil prices pincered by shale operating just at its margin, and the geopolitical and security flashpoints that had slipped in investors' mindsets but most evidently have not gone away.
Our view has been, and remains, that reflationary
forces will continue to dominate for the present, even if valuations are becoming less accommodating.
efforts will keep core euro-zone safe-haven yields at low or negative levels.
Kozo Yamamoto, a ruling party lawmaker and one of the architects of Abe's reflationary
policies, said the BoJ must ease further on April 30 -- when it meets for the second time this month to produce new long-term forecasts.
We view all this central bank activity as being reflationary
and supportive of financial assets and remain committed to our preference for equity investments.
TOKYO, Safar 22, 1436, Dec 14, 2014, SPA -- Japanese Prime Minister Shinzo Abe's coalition cruised to a big election win on Sunday, ensuring he will stick to reflationary
economic policies and a muscular security stance, but record low turnout pointed to broad dissatisfaction with his performance, Reuters reported.
Tokyo: Japanese Prime Minister Shinzo Abe's ruling coalition cruised to a big election win on Sunday, but record low turnout could weaken his claim of a mandate for reflationary
policies to revive the economy.
Abe has dubbed the election a referendum on his reflationary
The reversal in the Japanese economy has fueled doubts about Abenomics, as the reflationary
policies of Prime Minister Shinzo Abe are known.
The prevailing disinflation and a tail risk of deflation reflect the ineffectiveness of quantitative easing to deliver the intended reflationary
Japan's growth slowed for a second straight quarter in July-September, as the initial impulse of Abe's reflationary
policies, dubbed Abenomics, started to fade.