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.