Japan and Quantitative Easing

monetary policy: Since the beginning of the year, more than 20 central banks around the world have eased monetary policy, following the lead of the European Central Bank and the Bank of Japan, according to The Guardian. In the eurozone, countries on the periphery needed currency weakness to reduce their external deficits and jump-start growth. This requires a weak currency and conventional and unconventional monetary policies to bring about the required depreciation. But the euro weakness triggered by quantitative easing has further boosted Germany current-account surplus, which was already a whopping 8% of GDP last year. In Japan, quantitative easing was the first arrow of Abenomics, prime minister Shinzo Abe reform programme. With external surpluses also rising in other countries of the eurozone core, the monetary union overall imbalance is large and growing. (news.financializer.com). As reported in the news.