Not exact matches
As noted last week, even
with aggressive Fed
easing, the entire increase in the
monetary base over the last year has been drawn off as currency in circulation, while bank reserves (as well as commercial and industrial loans) have declined.
So even if the FOMC agreed wholeheartedly
with my own views, an
aggressive easing of
monetary policy still would not be the appropriate response.
The zero lag shows the «coincident» relationship between these two in data since 2006: a strong negative relationship,
with a slope coefficient of nearly -0.6 (
aggressive monetary easing has largely been a response to strong market losses over the overlapping period).
In December 2013, when the Liberal Democratic Party returned to leadership
with Abe as its minister, the LDP campaigned on renewed fiscal stimulus,
aggressive monetary easing from the BOJ, structural reforms to boost competitiveness and eventual fiscal consolidation.