Thursday, February 03, 2005


BOJ Bill Action Fails: Deflation Rampant

Deflation raised its ugly head in Japan, as the central bank failed to find takers for its zero interest treasury bills. " (T)he bank has flooded the markets with liquidity in an effort to head off systemic risk and rid the economy of deflation, which has dogged the economy since the mid-1990s...The BoJ’s board has predicted a return to inflation of 0.1 per cent in the year to March 2006, though officials admit this goal could be hard to attain if wages continue to fall".

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