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- November 1, 2014: Vol. 6, Number 10

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OECD recommends QE continue in Japan, begin in euro area

by Reg Clodfelter

With the latest GDP growth projections for Japan as low as 0.9 percent for 2014 and 1.1 percent for 2015 — far behind the United States’ 2.1 percent and 3.1 percent projections for 2014 and 2015, respectively — the Organisation for Economic Cooperation & Development has recommended a continuation of the nation’s quantitative easing, with Rintaro Tamaki, deputy secretary-general of the OECD, stating in a press conference that more QE would be needed “to secure a lasting break with deflation,” but that Japan would also need to “make more progress on fiscal consolidation than most other countries.”

Japan’s quantitative easing programme is set to expire at the end of the year, though it is expected to be continued indefinitely, carrying a trend of Japan’s monetary settings remaining broadly unchanged during the past 18 months, according to Moody’s Investors Service.

The OECD had a similar sentiment regarding the euro area, where the latest growth

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