BoJ hopeful introduces radical reflation proposal

With the name of the new governor of the Bank of Japan to be announced soon the battle is hotting up. On Sunday one of the favourites to land the job, Nobuyuki Nakahara, said the central bank should directly finance the government by Y5,000bn-Y10,000bn (£26.3bn-£52.6bn).

The radical proposal, which would expand government finances by about 1-2 per cent of gross domestic product, could capture the imagination of governing Liberal Democratic party politicians, many of whom are pushing for reflat