Deflation into the U.S.-Japan economic enemy or the implementation of a new round of quantitative easing policy

Deflation into an economic enemy the United States and Japan to seize the recovery will not let go the Japanese government to prepare the outline of the new economic stimulus plan by the end of this month, rather than the previous plan of the securities times in early September, Wu Jiaming, Japan's continued appreciation of the yen led to the Japanese stock market decline vengeance, the According to Japanese media reports, the Japanese government will be the end of this month to prepare the outline of the new economic stimulus plan, the government in the new economic stimulus plan called the BOJ to further relax monetary policy to deal with the yen rally.　　Market expectations, in order to prevent deflation, the US and Japan Central Bank or a new round of quantitative easing policy of the big curtain. Japan's stimulus plan or the early release of Japan's finance minister Yoshihiko Noda has hinted that the central bank will work together to develop a response if necessary.　　Japan's deputy finance minister, Kyoda, yesterday made clear that the rapid appreciation of the yen was not good for the economy and that the BOJ should take swift steps to prop up the economy, expressing its hope that the BOJ would further loosen monetary policy in the near future. The Japanese government is expected to prepare the outline of the new economic stimulus plan by the end of this month, rather than the earlier planned September. As part of the new economic stimulus package, the Japanese government has asked the central bank to loosen monetary policy further. The BOJ is considering further easing of monetary policy at a meeting of interest rates from September 6 to 7th or ahead of schedule, with the BoJ likely to continue to offer 0.1% interest rates to the market through "new public operations" and to increase the size of the injection from the current 20 trillion yen to 30 trillion yen, according to sources.　　The term extends from 3 months to 6 months. Japan's stock market finally stopped its decline as the government and central bank were about to intervene in the currency markets, with the Nikkei 225 index closed at 8906.48 points yesterday, up 0.69% per cent.　　In addition, in good corporate performance driven by the European stock market yesterday also slightly higher. Deflation is the biggest enemy of the US-Japan economy but the market is sceptical about the effects of government and central bank intervention in the currency markets. Analysts say the yen is still 28% below its 15-year high, if it takes into account years of deflation in Japan and inflation in its trading partners.　　This shows that the strong yen is only a superficial phenomenon, deflation is the key problem facing Japan's economy. Kyoda also stressed that, in addition to the appreciation of the yen, escaping deflation remains the government's most important goal.　　The government's draft new economic stimulus plan also shows that the government is asking the central bank to do more to push for greater efforts to fight deflation. In June this year, the monthly CPI in the United States fell by 0.1%, the July rebound 0.3%, but the basic inflation rate has barely increased.　　In addition, the United States July durable goods orders month rate is worse than expected, while the July new house housing sales were expected, the data show the U.S. economy is facing deflation risk. US-Japan or the opening of quantitative easing as the BoJ eased monetary policy further, the Fed's policies were quietly shifting.　　Only a few months ago, the Fed was discussing how to start withdrawing some of the monetary stimulus. local time 26th to 28, World central bank dignitaries and academics will gather in the United States to attend the annual Federal Reserve Policy Conference held here in August, and the heads of the G7 Wyoming State will attend. However, Zendena, an economist at the Tokyo-Mitsubishi Japan Bank, said that the global economy had slowed and even stalled since June, and that the atmosphere would have been quite different from last year's session. Analysts said that last year's discussion of the "exit" policy was a major focus of the meeting, but the global economy is now again entering an uncertain period, in order to prevent deflation, the US and Japan Central Bank or a new round of quantitative easing policy curtain.