Adviser to Japanese PM Abe out on Bloomberg 13 July 2016
Perpetual bonds aka helicopter money ( govt issues non-marketable bonds with no maturity date and the BOJ directly buys them )
- Honda ran the idea past Bernanke in April who noted it was an option
- Bernanke had warned Honda that Japan could return to deflation at any time
- Honda thought at the time that Japan was already engaged in supplying helicopter money but wanted to convey the idea to Abe and invited Bernanke to meet with the PM at that time
This latest story comes after strong denials from the govt that helicopter money was discussed at the eventual meeting this week.
Helping to explain the latest wave of yen selling that has seen USDJPY post 105.37 and EURJPY test strong offers at 117.00. Core pairs underpinned inc GBPUSD which has rallied to 1.3225
Yesterday Honda said the BOJ should increase bond buying.
