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BOJ Kuroda: Monetary easing doesn't necessarily lead to capital outflows
August 25, 2013 / 12:26 AM / 4 years ago

BOJ Kuroda: Monetary easing doesn't necessarily lead to capital outflows

TOKYO, Aug 25 (Reuters) - Bank of Japan Governor Haruhiko Kuroda said monetary easing by a central bank does not necessarily lead to cross-border capital outflows from that country.

“Almost all base money provided through monetary policy will be accumulated in the form of deposits with a central bank,” Kuroda said in a speech delivered on Saturday at the annual Jackson Hole symposium hosted by the Kansas City Federal Reserve Bank.

“Even if a country eases monetary conditions, this does not necessarily mean that money being provided directly ‘spills over overseas’,” he said in the speech, according to a text posted on the central bank’s website on Sunday.

Some emerging nations have complained about the impact of advanced nations’ ultra-easy monetary policies on their economies. They argue that the huge amount of money printed by advanced nations spilled over to their economies, causing unwelcome inflation.

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