Japan Macro Advisors' Okubo Says Machine Orders Stagnant

The transcript discusses the volatility in the Japanese economy, highlighting the lack of corporate investment despite high profits. It evaluates Governor Kuroda's term, noting successes in boosting the economy but failures in achieving inflation targets. The discussion also covers the Bank of Japan's balance sheet management and implicit tapering actions.

What is the main reason Japanese companies are hesitant to invest in domestic capacity?

• Lack of financing

• High corporate taxes

• Uncertainty about the Japanese economy

• Shortage of skilled labor

What has been a significant challenge for Governor Kuroda during his term?

• Achieving the 2% inflation target

• Reducing unemployment

• Boosting corporate profits

• Increasing exports

What is one of the successes attributed to Governor Kuroda's policies?

• Boosting the stock market

• Strengthening the yen

• Reducing the national debt

• Increasing interest rates

What action did the Bank of Japan take in September regarding JGB purchases?

• Increased the size of purchases

• Stopped purchasing altogether

• Started purchasing foreign bonds

• No longer targeted the size of purchases

What does the Bank of Japan's recent action on JGB purchases indicate?

• A reduction in corporate taxes

• A focus on foreign investments

• An implicit tapering strategy

• An increase in interest rates