DAYTON, Ohio, April 4 Two top policymakers at the U.S. Federal Reserve gave cautious endorsements of the Bank of Japan's aggressive move to boost the Japanese economy, saying on Thursday it could help economies globally.
Atlanta Fed President Dennis Lockhart and Charles Evans of the Chicago Fed expressed hope that the BoJ would finally be able to get the Japanese economy back on track after two decades of stagflation.
"Having Japan over the last many years going in and out of deflationary periods and being poised on the knife's edge of deflation and reflation, versus growth, is not a healthy element of the global scene," Lockhart told reporters on the sidelines of a University of Dayton student investment forum.
"So their preparedness to take more aggressive action, if it works, will certainly help everyone," he said.
Central bankers globally on Thursday were digesting details of the BoJ's monetary stimulus plan, which in scope is unmatched by even the Fed's unprecedented actions to spur post-recession economic growth in the United States.
The BoJ promised to inject some $1.4 trillion into Japan's economy in less than two years, a radical gamble meant to boost growth and lift inflation expectations.
"In a way they fill in one more piece of a global picture of aggressive accommodation," Lockhart said, noting the BoJ's move leaves the European Central Bank as the least accommodative of the developed world's big three central banks.
"How it will work or how effective it will be, it's too early to say," he added.
Also speaking to reporters, Evans called the BoJ's plan "pretty aggressive."
"I certainly hope that every foreign central bank around the world is able to adopt policies that ultimately lead to the most vibrant economies that those economies can have because we need it around the world," Evans said.
"There's not going to be one breakout country that's going to be the engine of growth for everybody else."