Going Sumner

Japan appears to be finally ready, after two decades, to expand their monetary policies.  Pretty much as Bentley University's Scott Sumner has been lately preaching.  The early returns say it will work;

Japan's central bank has surprised markets with the size of its latest stimulus package, as it tries to spur growth and end years of falling prices.

The move was seen as a clear signal by the bank's new boss, Haruhiko Kuroda, that he was willing to spend heavily to achieve an inflation target of 2%.

The bank said it would increase its purchase of government bonds by 50 trillion yen ($520bn; £350bn) per year.

That is the equivalent of almost 10% of Japan's annual gross domestic product.

So maybe the 'zero bound' liquidity trap theory will be tested. 

At any rate, the Japanese people are putting their money where there expectations are;

The yen fell against the US dollar, and Tokyo's Nikkei 225 index rose 2.2% on the central bank's decision, indicating markets were reacting positively to the extent of the stimulus measures.