Japan's BoJ Faces Inflation Risks, Echoing US 2022 Experience
What’s happening in Japan is a repeat of what happened in the US in 2022.
The BoJ was too drunk and dependent on zero rates. It fueled asset bubbles domestically and internationally.
Even when the policy was obviously inflationary and there was already a recent example with the US, BoJ just wouldn’t listen. Like all central bankers, they imagine they have the power to easily contain inflation. They don’t.
Now they run the risk of setting off a major upheaval in the global financial markets if they hike too fast. Japan’s stock market is already starting to reflect the coming collapse of corporate earnings resulting from a strong yen and deteriorating prospects for its automakers vs China.
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https://x.com/BrianTycangco/status/1837312817202167872
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