Ahhaha, from kitco...
Tuesday June 16, 9:01 pm Eastern Time
Japan urged to print more money to boost economy
MELBOURNE, June 17 ( Reuters ) - Japan's central bank should crank up its printing presses and massively
expand money supply to help reignite its recessionary economy, a senior Canadian economist said on Wednesday.
Royal Bank of Canada chief economist John McCallum admitted his suggestion seemed like ''economic heresy''
but said the task of reflating the world's second-biggest economy was urgent.
''I think printing money is the solution but not to the point of creating massive inflation,'' McCallum told reporters
at a trade and investment conference in Australia.
''When you print a lot of money you have a lower yen and if, I think, the yen does not plummet, I don't think
people should get alarmed by a lower yen.''
Despite the yen's plunge to nearly 147 yen to the U.S. dollar on Tuesday and record low interest rates in Japan,
McCallum said more expansive monetary policy was still badly needed.
The additional money would be used help Japan's struggling banking sector to rid their balance sheets of bad debts
and ease a credit crunch that is holding back economic recovery, he said.
''If your put more money into the system, you can alleviate that credit cruch,'' McCallum said.
"The banks are in rotten shape," he added.
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