America turning Japanese?

Here’s an interesting thought from RBC Capital Markets US Interest Rate Monthly Atlas.

It relates, specifically, to the differences between — and similarities of — US and Japanese quantitative easing:

Since the middle of last year, the Fed has effectively been quantitatively easing, although in the more comprehensive and dynamic form of “Credit Easing.” The Fed concentrated on both the mix of assets it purchased and on increasing bank reserves. Combined with the other liquidity and lending programs, the Fed more than doubled its balance sheet in a matter of months.

By comparison, The BoJ’s response was much less forceful, leading to prolonged stagnation in equity markets. Whether or not the Fed’s effort will inhibit similar results remains to be seen. So far, however, equity markets have acted similarly.

US QE vs Japan QE, and stock effect - RBC Capital Markets

Coincidence, surely?

Related links:
Will removals of stimulus lead to another ‘lost decade’ – FT
Why the US won’t lose a decade – FT Alphaville
That’s not quantitative easing… – FT Alphaville

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