- Monetarism has crawled, zombie like, from the economic grave. Japan has adopted the policy of the economic undead, declaring it will target base money rather than interest rates. Good news - the Bank of Japan has influence over base money. Bad news - base money has little influence over the economy.
- The BoJ is to double its bond buying . Economically the details do not matter - it basically boils down to more money printing. Japanese banks could do nothing with that money, lend it domestically, or lend it internationally. If they do not lend domestically, the domestic economic impact is very limited.
- The ECB is not expected to do anything today - the press conference is likely to sound more dovish, however (given recent data flow). Of interest is whether anyone raises the question of whether Cyprus is really in the Euro, post capital controls?
- The Bank of England is expected to be on hold. The credit survey showed funding for lending working as well as could be expected. Meanwhile we have service sector sentiment data in the Euro area and the UK, and Fed Chairman Bernanke speaking in the US.
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