BOJ's Kuroda keeps his options open
Kuroda spoke to reporters at the G20, just a few days ahead of the July 29 Bank of Japan decision.
- BOJ will add stimulus if needed
- Japan is in a gradual recovery phase
- Japan's virtuous economic cycle is continuing
- Direct underwriting of debt banned in developed world
Meanwhile, a separate official said G20 talks with the US's Lew didn't discuss FX much.
The different definitions of helicopter money was one of the things I highlighted.
What is it?
- Dropping money from a helicopter
- Depositing money into citizen's accounts
- Monetizing debt
- Pledging to maintain/increase QE holdings for 100+ years and issuing the govt zero-coupon bonds
The last one, to me, is the same thing because it gives the government a huge amount of money to spend that will never be paid back. But there's no strict definition of helicopter money.
Last week, USD/JPY took a spill in Europe after an interview with Kuroda ruled out helicopter money. The 120 pips fall bounced after it was revealed the comments were recorded more than a month ago.