“On Friday [Nov. 6, A.D. 2015] the Bank of Japan [BoJ] revised down its inflation and growth forecasts, and pushed back its expectation of hitting the 2 per cent inflation target to the end of next year. It seems likely, and indeed desirable, that the BoJ will be forced to expand its programme of quantitative easing [QE] before too long.”
QE is intended to cause more borrowing, more spending and more inflation in whichever country/economy that promotes it. In the case of Japan, continued reliance on QE is strange since they’ve tried to use some version of QE for most of 25 years without much success.
Why does Japan continue to beat that dead horse? Could it be because that’s the only horse they have? Financial Times: