Don't Get Your Hopes Up for a Japanese Turnaround

Over the past decade the Bank of Japan has more than doubled the monetary base with little or no effect on the real economy. Now it plans to double it again â?? this time within just two years. Although the recent policy statement has a material impact on financial market pricing, we see a very real risk that, in the absence of much-needed structural reforms, the medium term outlook for growth will be little changed.