The US economy is 3.5 times bigger the than of Japan. Yet at current exchange rates, the Bank of Japan is injecting $53 billion/month into its banking system, equivalent to the Fed injecting $187 billion/month into ours rather than the $85 it’s been injecting until recently. Despite this massive and unparalleled monetary intervention, inflation is barely positive and is primarily coming from higher import prices due to the weak Yen.

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