NEW YORK Japanese Finance Minister Taro Aso on Wednesday brushed aside the risk that the nation’s central bank could resort to “helicopter money,” or direct underwriting of public debt to finance government financing.
“Actually, there are a variety of problems to these ideas. For one, it could endanger the Bank of Japan’s autonomy and market confidence over fiscal policy,” Aso said in a conference at Columbia University.
“If we leave our efforts on financial discipline, that could invite a separation in Japan’s financing or runaway inflation which could have a negative effect on the general public. We can’t allow that to happen,” he said.
(Reporting from Leika Kihara; Testing by Leslie Adler)