(Animated graphic of Japan's desperate battle to get the
economy growing: tmsnrt.rs/2igbqRk)
TOKYO Dec 28 The Bank of Japan has led Prime
Minister Shinzo Abe's effort to stimulate the world's
third-biggest economy, but its often innovative steps have yet
to end decades of falling prices and feeble growth.
To help explain what it all means, the Reuters graphics team
has produced an animated guide to the often bewildering world of
QQE, YYC and other tricks of the BOJ trade. (tmsnrt.rs/2igbqRk)
Deploying "quantitative and qualitative easing" (QQE)
policies, the BOJ has pumped a torrent of freshly minted yen
into the economy, largely by buying government bonds. The aim
was to stoke inflation and encourage spending.
When that failed to ignite economic activity, the central
bank early this year imposed a negative interest rate, charging
banks to park some of their overnight cash. It hoped this would
This, too, didn't do the trick. So the central bank in
September pioneered "yield curve control" (YCC), an attempt to
spur lending by ensuring a gap between short-term interest rates
where banks borrow and long-term rates where they lend.
Whether the BOJ's latest steps will succeed, where years of
unorthodox policies haven't, remain a key question for 2017.
(Graphic by Simon Scarr, Jin Wu, Weiyi Cai; Additional graphic
text by Neil Fullick; Narration by Jeremy Wagstaff; Text writing
by William Mallard; Text editing by Bill Tarrant)