While investors keenly monitor the Fed, the Bank of Japan's actions can send shockwaves through global markets
In the modern world, where investors and traders are focused on the Fed, the Bank of Japan's (BOJ) influence is often overlooked. However, even a 25-basis point hike by the BOJ caused turmoil in global markets. If the BOJ were to adopt aggressive rate hikes like the Fed, the resulting chaos could dwarf the financial crises of 2008 and 1929.
[This article has been reproduced with permission from SP Jain Institute of Management & Research, Mumbai. Views expressed by authors are personal.]