Governor Haruhiko Kuroda says the Bank of Japan may need to get creative in any further monetary stimulus.
Among options analysts highlight: regional-government bonds, a type of security that could aid public support.
Kuroda, speaking in an interview with Bloomberg Television on Friday in Davos, Switzerland, said “there are many options and I don’t think it’s constructive to say this or that could be done.” He reiterated that if inflation expectations are “seriously” affected by disinflation, policy can be changed.
South Korea’s finance minister warned on Monday of deflation risks and promised to keep prices at an appropriate level, but analysts played down chances of any policy shift in the short term.
The numbers are daunting: It will take $1.993 trillion, a number that looks like $1,993,000,000,000, to provide insurance subsidies to poor and middle-class Americans, and to pay for a massive expansion of Medicaid and CHIP (Children’s Health Insurance Program) costs.
It is unrealistic to expect Greece to repay its huge debt in full, the chief economics spokesman for the victorious Syriza party has told the BBC.
“Nobody believes that the Greek debt is sustainable,” Euclid Tsakalotos said.
City Treasurer Russ Fehr will report Tuesday night to the City Council that long-term unfunded liabilities grew by another $102 million in the past year and now stand at nearly $2.3 billion. Barring miraculous economic growth, that debt will hit taxpayers sooner or later, through higher taxes and fees or reduced services or both.
The interest payments alone are expected to hit $227 billion this year, more than double to $480 billion by 2019 and more than triple to $722 billion by 2024.
The gap for fiscal year 2016 has widened to more than $1.5 billion.
The price of oil is mostly to blame. Lawmakers pegged this year’s budget at $100 per barrel oil. It’s now about half that.
On Tuesday, the yield on 10-year government paper jumped 55 basis points, to 9.548%, the highest level in a week, according to electronic trading platform Tradeweb. On 5-year paper, borrowing costs surged 1.478 percentage points to 11.604%.
The Office for National Statistics said the U.K.’s gross domestic product expanded by 0.5% in the fourth quarter, a slower growth rate than the 0.7% logged in the third quarter and weaker than the 0.6% expected by economists.
China has lowered its target for industrial-output growth to around 8% this year from 9.5% in 2014, an official at the industrial ministry said Tuesday.
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