Nov 10, 2017

Japan's balance sheet imbalance

Dan Primack

The size of Bank of Japan's balance sheet is fast approaching Japan's GDP, as BoJ has spent more than a year buying up government debt (primarily to meet a 2% inflation target). For context, the Federal Reserve balance sheet represents less than one quarter of U.S. GDP.

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Data: GDP from Japan Cabinet Office, seasonally adjusted. Bank of Japan assets from Bank of Japan, not seasonally adjusted. Both retrieved from Federal Reserve Bank of St. Louis; Chart: Andrew Witherspoon / Axios

Why it matters: Local economists to worry about what will happen to BoJ when long-term interest rates eventually begin to rise, lowering the value of the central bank's holdings but spiking its interest rate payments. And while we don't yet have Q3 GDP data for Japan, we do know that BoJ assets continued to grow.

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Jacob Knutson

The Fed opens its doors to fintechs

Photo: Caroline Brehman/CQ Roll Call

The Fed is extending invitations to financial technology companies (and other companies interested in fintech) for face-to-face conversations. The sessions are called "financial innovation office hours,” the central bank announced Tuesday.

Why it matters: This is a first for the Fed board, though the San Francisco regional bank has hosted similar events in the past.

Go deeperArrowDec 18, 2019
Bethany Allen-Ebrahimian

World Bank changes hiring rules after asking Taiwanese staff to get Chinese passports

World Bank President David Malpass. Photo: Mandel Ngan/AFP via Getty Images

The World Bank has revised its staff rules after Axios reported in December that the bank had asked Taiwanese employees to obtain Chinese passports.

Why it matters: The revised rule, issued on Dec. 19, states that the World Bank gives hiring preference to nationals from member states, but does not prohibit hiring non-member state nationals. China has sought to squeeze out Taiwanese nationals from international institutions. The World Bank's new rules represent a compromise position.

Go deeperArrowJan 9, 2020
Dion Rabouin

Eurozone producer prices sink again

Data: FactSet; Chart: Andrew Witherspoon/Axios

The continued decline in prices paid by manufacturers could be a major impediment to European policymakers' desire for higher inflation in the eurozone, and data released Monday shows things are not improving.

What happened: The producer price index for the eurozone fell for the fourth straight month in November.

Go deeperArrowJan 7, 2020