Econoday Unplugged

The Bank of Japan is now using a new policy tool, managing the 10-year JGB yield curve in an effort to stimulate the economy. What are the details and what are its prospects?

The Bank of Japan is expected to act, unlike the Federal Reserve which is expected to stay on hold.

Central banks continue to be the focus globally. Have central bank speakers stirred concerns of the Banks’ credibility? Is it a good thing that policy makers air their disagreements in public in their desire to make their decision making more transparent?

Monetary policy is the focus and the questions? Is there any chance that the Bank of Japan can meet its inflation target? Did the Bank of England react too quickly to Brexit? And has the August employment report ended any chance for a September rate hike?

The European economy is steady but biased perhaps toward slowing, a contrast with the U.S. where the economy, specifically the consumer, may be building up steam.

The latest data out of the U.S. are both good and bad, unlike Japan where good news is very hard to find.

The Bank of England launched a big round of stimulus, underscoring the weak outlook for Europe and with it the softening outlook for Asia as well. But for the domestic-focused economy in the U.S., the outlook is less downbeat.

Facing slowdown risks tied to Brexit, the Bank of England is set to offer more stimulus at its Thursday meeting, cutting rates and/or upping QE.

Econoday's economists assess the limits of conventional monetary policy to stimulate global growth and discuss the possibility of alternatives, including the necessity for fiscal efforts.

Volatility is easing but talk of a new vote is raising the prospect that the U.K.'s exit from Europe may not be a foregone conclusion.