Home > Central banking > BoJ says it will not tolerate deflation

BoJ says it will not tolerate deflation

Ft.com reports that Bank of Japan will order the tide not to recede.  It will use fiat toilet paper to order the tide back.

Let’s see if it works.  If it does, the laws of financial gravity will need to be re-written.

Perhaps the Bank of Japan should not have allowed reserve ratios for Japanese banks to go as low as 3% in the first place.  Once you lower the reserve ratio, you’re on the road to Hell.

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Categories: Central banking
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