| DAYTON, Ohio, April 4
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
"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
"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."