If one had any doubts as to quite how aware PM Abe is of the market impact of his ‘nomics’, look no further than his comment yesterday that the rise in stock prices “has boosted individual household assets by Y30tn” (or $300bn in Ben’s Bucks).
The only other Policy maker to be so explicit with reference to policy’s intent to inflate collateral values (and confidence/wealth therewith) was the infamous Mr Greenspan, when in an Op-ED in the FT on June 2009 he stated:
“A prolonged recovery in global equity prices would thus assist in the lifting of deflationary forces that still hover over the global recovery”.
We read the FT that day.
So did Mr Abe it appears.
For those who still can’t quite understand Bernanke/Abe/Carney et al and their current thinking, this was (and is) an essential read. We attach again here.
