Macro Mondays
#22 - Either you do Japan, or Japan will do you! - Guest: Weston Nakamura
Nov 5, 2023
Japanese monetary and fiscal policy expert Weston Nakamura discusses the Bank of Japan's success in fighting against USD strength, challenges of normalizing monetary policy, analyzing trends and manipulating statistics, exploring political uncertainties and defense expenditures, the impact of forceful push on US yields and the European equation of debt, and analysis of the UK financial sector and labor market conditions.
59:16
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The Bank of Japan's shift in yield curve control policy adds uncertainty and may impact global fixed income trends.
- Predicting issuance during political turmoil is challenging, but defense spending is less likely to face cuts.
Deep dives
Bank of Japan's Yield Curve Control Strategy
The Bank of Japan has shifted its yield curve control policy, aiming to increase flexibility in its buying operations to reclaim control over yield curve control control. The policy change adds uncertainty as to where the goalposts lie and could lead to market dysfunction if yields press against a stated level. The bank will need to be more active in managing the pace of the yield curve, using different buying tools and operations to avoid fixed-rate unlimited buying. The change in policy could also have implications for global fixed income trends, potentially impacting other central banks like the Federal Reserve and the European Central Bank.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
