"The BOJ has been and will always be ready to take appropriate and decisive action when the economy deviates from our baseline scenario, or when risks to our scenario materialise"
- Deputy Governor Kiyohiko Nishimura
The total quantity of domestic currency in circulation and deposited in banks in Japan dropped in November, the BoJ said on Tuesday. Japan's M2 money stock was up 2.1% on year in November, totalling 819.4 trillion yen and posting a slower pace than a 2.3% increase in the previous month. In the meantime, the broader M3 money stock, which also includes large and long-term deposits, rose 1.9% to 1,126.5 trillion yen, meeting analysts' expectations. In the previous week, the Bank of Japan claimed its readiness to expand its asset purchase programme to boost economic growth, so the increase in the money stock is expected to be seen by the end of this year.
"The BOJ has been and will always be ready to take appropriate and decisive action when the economy deviates from our baseline scenario, or when risks to our scenario materialise," Deputy Governor Kiyohiko Nishimura told business leaders in the northwestern city of Niigata on Wednesday.
"Shirakawa forgot the right kind of economics," Hamada said from his home in Wallingford, Connecticut. "He sticks to his principles and doesn't use flexible political judgment."
"We are yet to see any light out of this recession tunnel," said Takiji Okubo, principal at Japan Macro Advisors, a Tokyo consultancy.
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