| Bank of Japan action threatens emerging Asia | The Bank of Japan just threw another log on the fire. Over the coming two years, it plans to inject the equivalent of $1.4tn into the system. And more could come as officials struggle to hit their newly imposed inflation goal.
Whether all this cash will cure Japan's ills is doubtful. The country's problems are not monetary but structural. Much of this liquidity will thus leak abroad to where it is least needed: emerging Asia. The region, including China, is already drowning in liquidity and the BoJ's action means another powerful wave will crash on to its shores. This will raise inflation pressure and, possibly, stoke asset bubbles, writes Frederic Neumann.
http://link.ft.com/r/TWK799/HIUBHC/IYGFQP/TUJJQ9/XBD42F/FW/h?a1=2013&a2=4&a3=24
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