“The new team is much closer to the Fed and the Bank of England, but critics say the bank risks becoming a mere branch of the finance mininstry — where Mr Kuroda spent much of his careers.  The great fear is that Japan will lurch from stable deflation to an unstable price spiral that suddenly causes investors to question the integrity of the country’s 23 trillion public debt, the world’s largest.  The IMF says Japan’s gross debt will reach 245pc of GDP this year. It has been possible so far because banks have gobbled up government bonds worth 100pc of GDP but this makes the banking system ever more vulnerable to a sudden rise in rates.”

http://www.telegraph.co.uk/finance/economics/9946056/Bank-of-Japan-vows-all-means-available-to-smash-deflation.html

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