New Governor Haruhiko Kuroda committed the BOJ to open-ended asset buying and said the monetary base would nearly double to 270 trillion yen ($2.9 trillion) by the end of 2014 in a shock therapy to end two decades of stagnation.
The U.S. Federal Reserve may buy more debt under its quantitative easing, but with the Japanese economy about one-third of the size of the United States, the scope of Kuroda’s “Quantitative and Qualitative Monetary Easing” is unmatched.
Japan has done similar quantitative easing before. America is in the middle of quantitative easing with supposedly no end. Eventually the markets go where they desire. The flow happens. You just need a plan to handle that unexpected flow. Trying to figure what governments will do next is not a wise plan.