Money Printing: Is it Taking Over the World?
With the lack of economic growth around the world, more nations are looking at expanding their monetary policy strategies in an effort to kick-start their economies. The latest country showing a decrease in economic growth is Japan.
Reports out of Tokyo indicate that economic growth, as measured by the country’s gross domestic product (GDP), declined at an annual rate of 3.5% in the third quarter. This follows a revised second-quarter decline in economic growth by 0.1%, indicating the nation is in a recession. (Source: “Japan Sinks Into Recession as Abe Calls for More Stimulus,” Bloomberg, December 10, 2012.)
An important date for Japan is December 16, which is when the next election for that nation will be held. The leader of the main opposition party in Japan, Shinzo Abe, currently leading in the polls, has repeatedly stated that if elected, he will demand a massive increase in monetary policy to try to stimulate Japan’s economic growth. He has called for unlimited monetary policy easing, meaning endless money printing. (Source: “Japan Sinks Into Recession as Abe Calls for More Stimulus,” Bloomberg, December 10, 2012.)